GDP: It means Gross Domestic Product. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually acalendar year). GDP = consumption + grossinvestment + government spending +(exports – imports), or, GDP = C + I + G + (XM).
GNP: The expansion form of it is Gross National Product. Gross National Product.GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. Basically, GNP measures the value of goods and services that the country’s citizens produced regardless of their location. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal.
Percapita income: Total national income (GDP) divided by total population. It is not the average income (because it includes children and non-working population) but serves as an indicator of a country’s living
standards.
Inflation: Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation reflects a reduction in the purchasing power per unit of money –a loss of real value in the medium of exchange and unit of account within the economy
Capital Goods: Capital goods are the tools and machines used for producing consumer products. Capital goods are also known as producer goods.
Balance of Payments: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country’s exports and imports of goods, services, financial capital, and financial transfers
Current Account Deficit: A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services it exports. The current account also includes net income, such as interest and dividends, as well as transfers, such as foreign aid, though these
components tend to make up a smaller percentage of the current account than
exports and imports. The current account is a calculation of a country’s foreign transactions, and along with the capital account is a component of a country’s balance of trade
Trade Deficit: An economic measure of a negative balance of trade in which a country’s imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets
