ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Current-dollar GDP increased 3.9 percent, or $652.6 billion, in 2014 to a level of $17, 420.7 billion, compared with an increase of 3.7 percent, or $604.9 billion, in 2013.

Detailed explanation-2: -In general, calculating real GDP is done by dividing nominal GDP by the GDP deflator (R). For example, if an economy’s prices have increased by 1% since the base year, the deflating number is 1.01. If nominal GDP was $1 million, then real GDP is calculated as $1, 000, 000 / 1.01, or $990, 099.

Detailed explanation-3: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). or, expressed in a formula: GDP = C + I + G + (X – M) GDP is usually calculated by the national statistical agency of the country following the international standard.

Detailed explanation-4: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.