Nominal and real GDP refers to the market value of goods and services produced in a country at current and constant prices. Nominal GDP: It refers to the GDP at current prices. In other words, it is the market value Read More …
The aggregates of national income include all the terms related to the determination of income for a country whether within it or outside. It majorly includes GDPMP, NDPMP, GNPMP, NNPMP, GDPFC, NDPFC, GNPFC, and NNPFC. Aggregates of National income: The Read More …
Gross and net domestic product are the concepts related to domestic product. These can be regarded as criteria for calculating domestic products in respect of the consumption of fixed capital. Gross and Net Domestic Product: Depreciation or consumption of fixed Read More …
Domestic and national income is defined by domestic and national concepts in an economy. These terms define the income generated by residents or non-residents within or outside the domestic territory. Domestic and National Income: Domestic income is the total of Read More …
National income refers to the sum total of factor incomes earned by normal residents of a country during the period of a year. Concept of National Income: National income is the aggregate of factor incomes earned in an economy Read More …
Circular flow of money refers to the continuous circularity of real flows and money flows across different sectors of an economy. Circular flow of money: In an economy, the money flows from producers to households for the purchase of factor Read More …
Real flows and Money flows explain the intersectoral flows of goods and services and money from one sector to another in an economy. Real Flows and Money Flows or Intersectoral Flows: It refers to the flows driven by intersectoral dependence Read More …
The sectors of an economy in macroeconomics include the household sector, producer sector, government sector and the external sector (rest of the world). Sectors of an economy: Sectors of an economy refer to the particular group of people with homogenous Read More …
Stock and flow are widely used concepts in macroeconomics. Stock refers to the value of economic variables at a point of time and Flow indicates the same during a period of time. Concept of Stock: Stock refers to the amount Read More …
The concept of obsolescence refers to the reduction in the utility of a fixed asset when it becomes obsolete or outdated. Concept of Obsolescence: The concept of obsolescence can be defined as the loss in the use of fixed assets Read More …