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Gross Domestic Product - Coggle Diagram
Recent Context
NSO's 1st advance estimate
Showed GDP growth rate 9.2%
Way Forward
Go Beyond GDP
Reduce Inequalities
Promote Environmental Sustainability
Promote Socio-Cultural well being
Promote Psychological well-being
Significance of GDP
Classic economists link
GDP growth with
higher individual satisfaction
Acts as marker of growth
Shows whether economy
contracting or expanding
Helps taking appropriate actions by
Policy makers
Central Banks
Analyses impact of variables
Fiscal Policy
Monetary Policy
Economic Shocks
Spending Plans
Measures people's well being
Limitations
Fails capturing
Unpaid Work
Unorganised Sector
Free online services
Capital Depreciation
Environmental Degradation
Lags in capturing actual data
Unlike Classical economists beliefs
People make irrational choices
GDP growth did not Trickle down
Weak relationship between
Money
Well being
Issues in comparing nations GDP
Different population size
Solution
Use GDP Per Capita instead
Varied Cost of living
Means difference in price of
Goods
Services
Solution
Use Purchasing Power Parity instead
Additional Indicators to Measure well-being
Gross National Happiness (GNP)
Human Development Index (HDI)
Bare Necessities Index (BNI)
Green GDP
Genuine Progress Indicator
What is GDP?
Value of
final goods and services
Produced during a period
