WHAT IS GDP GDP – 1.22$ Trillion in 2008 GDP rate – 6.7 % overall It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy.
GDP DEFLATOR In economics, the GDP deflator (implicit price deflator for GDP) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. GDP Deflator =(Nominal GDP*100)/Real GDP
CONSUMER PRICE INDEX A consumer price index (CPI) is a measure estimating the average price of consumer goods and services purchased by households.
DIFFERENCE GDP DEFLATOR CPI * All goods & services produces * On the basis of basket which Within the country. Includes few consumable goods. * Change in price of all goods & * Change in price of goods services. Included in basket. * Measured Weakly. * Measured yearly. * Measure all goods & services. * Measure only consumable good & services.
WHOLESALE PRICE INDEX A Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods.
DIFFERENCE CPI WPI * It measures inflation * It measures at each stage in final stage * Price increase for * Price increase for end consumers producer & traders
PRICE INDEX ? * IN INDIA WE USE---------????? CPI / WPI * WE USE BECAUSE---------