GDP- Gross domestic product
GDP is one of the measures of national income of a country.It is the total value of all the products and services produced in the country .GDP can be measured in three ways though all are conceptually same. First, it can be measured as the expenditure of the the final products and services produced in the nation during the stipulated period of time..Second, it can be measured as the market value of the product being produced, Third, it can be expressed as the sum of total income generated by the production during the period.Various factors that are involved in the measurement of GDP are Consumption, Investment, Net export, Expenditure of the government. Calculation of GDP can be expressed in the form of equation as
GDP= C+I+G+(E-I)
C-consumption,
I-Investment,
G- Government expenditure,
E-Export,
I-Import.
GDP is commonly measured in terms of expenditure.Various types of GDP and GDP growth are, 1.Current GDP- where GDP is expressed in terms of current prices of the period being measured. 2.Nominal GDP growth- expressed as increase in GDP and adjusted according to change in price. 3. Real GDP growth- Expressed as increase in GDP and adjusted according to change in price.GDP per captia would be used as the measure of standard of living. The major advantage of using GDP per captia as the measure of standard of living is that it is measured widely, frequently and consistently. Frequently in that in most countries GDP is measured quarterly basis, widely in that GDP is measured in almost all the country around the world, Consistently in that the technical definition used within the GDP are relatively consistent among the countries and there can be confidence that same thing is being measured in every country. The disadvantage of using GDP per captia as the measure of standard of living is that, strictly speaking, it does not actually measure the standard of living because...