Answer to Question #103013 in Macroeconomics for gashu

Question

define
1. GDP
2. GNP
3. NI
4. Nominal GDP
5. Real GDP
6. Consumer price index

Answer 1

1.     GDP (Gross Domestic Product) is the total value of all goods and services produced within a country in a financial year.

2.     GNP (Gross National Product) is the total value of finished goods and services that are produced in a country by its nationals in one year.

3.     NI (National Income) is the total value of all goods and services produced in a country in one year.

4.     Nominal GDP is the total monetary value of all goods and services produced in a country during a year at their current prices.

5.     Real GDP is the total value of goods and services produced in a country while taking into account price changes due to inflation.

6.     Consumer Price Index measures changes in prices level of a predetermined basket of consumer goods.