|
Share Thread: Facebook Twitter Google+ |
|
LinkBack | Thread Tools | Search this Thread |
#1
|
||||
|
||||
What is GDP nominal, real, PPP
Please explain these terms so that a layman like me could understand. I have been trying to understand these by listening to lectures online, but haven't been able to fully grasp these concepts. Thanks in advance.
|
#2
|
||||
|
||||
Salam brother,
Let's understand these concepts in most simplistic way.assume there is a country A.this country produced two items (finished goods) of worth 10 ruppees , an egg(4 ruppes) and an apple(6 ruppes). Now the total GDP of county A would be 10 ruppees.it is nominal GDP.now suppose we adjust it according to inflation, that a year earlier, the price of apple was 5 and that of egg was 3.this adjusted GDP 8 ruppes would be real GDP . Now suppose there are countries B and C.the price of egg and apple is 8 yuan and 12 Yuan respectively in country B anrd 2 dinar and 4 dinarin country C. Purchasing power parity means that the bundle of goods value would be compared in single currency.for instance GDP of country B is 20 yuan but in PPP its GDP would be 10 ruppes (as it produces one egg and one apple as finished goods.we took ruppes as standard international currency.PPP is more convenient as compared to exchange rates Sent from my T480 using Tapatalk |
The Following 2 Users Say Thank You to qublai khan For This Useful Post: | ||
Aamish Bhatti (Sunday, May 08, 2016), fawadhash (Sunday, May 08, 2016) |
#3
|
||||
|
||||
Quote:
__________________
There is no one to stop you from succeeding other than yourself |
The Following User Says Thank You to fawadhash For This Useful Post: | ||
qublai khan (Sunday, May 08, 2016) |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Notes for Lecturer Economics 2013 Test (By a Lecturer Economics) | jaris ojeran | SPSC Other Examinations | 37 | Friday, August 10, 2018 07:36 PM |
I Need Mcqs for Economics | Beauty | Economics | 24 | Tuesday, February 28, 2017 12:20 AM |
Overview Of The Economy | free thinker | Pakistan Affairs | 5 | Tuesday, February 11, 2014 02:24 PM |
Simple and Real Friends | Last Island | Humorous, Inspirational and General Stuff | 0 | Monday, March 05, 2007 05:11 PM |
Theory of Ideas | Khuram | Discussion | 2 | Saturday, June 24, 2006 07:26 PM |