What is G.D.P. This question raises in the mind of many people. You know what is the idea of where GDP comes from? GDP was first used by US economist Simon during 1935-44. This word was introduced by Simon to America.
When the world's banking institutions managed to estimate economic growth, most of them could not find a word for it. When Simon showed this word by defining this GDP word in the US Congress, then the International Monetary Fund (IMF), started using the word.
What is G.D.P.-
Gross Domestic Product (GDP) is the scale or means of measuring the economic health of any country. Let us tell you that GDP is calculated in India every quarter. The GDP figure is based on the growth rate of production in the major production areas of the economy. There are three major components of agriculture, industry and services under GDP. In these areas, the GDP rate is fixed on the basis of average increase or decrease in production.
Gross Domestic Product (GDP) is the scale or means of measuring the economic health of any country. Let us tell you that GDP is calculated in India every quarter. The GDP figure is based on the growth rate of production in the major production areas of the economy. There are three major components of agriculture, industry and services under GDP. In these areas, the GDP rate is fixed on the basis of average increase or decrease in production.
GDP is presented in two ways-It is presented in two ways, because the prices of production continue varies with inflation. This scale is the "constant price", under which the rate of production and production of GDP is fixed at the cost of production in a base year whereas the second scale is the "current price", which includes the inflation rate of the production year.
Constant Price-
India's Statistical Department determines the base year for the assessment of production and services, ie base year. During this year, prices are determined based on prices and comparative growth rates, and this is the cost price of GDP. This is done so that it can be measured accurately by keeping GDP rates apart from inflation.
India's Statistical Department determines the base year for the assessment of production and services, ie base year. During this year, prices are determined based on prices and comparative growth rates, and this is the cost price of GDP. This is done so that it can be measured accurately by keeping GDP rates apart from inflation.
Current Price-If the rate of inflation is added to the production value of GDP, then we get the current value of economic production. This means that you have to add the constant price to the GDP at an immediate inflation rate.
The End
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