INFLATIONARY GAP

It is defined as the gap between the planned expenditure and the real
output available at full employment.

The rate of inflation is :

( Delta Y/ delta Y ) * 100 .

With the help of PIN the rate of inflation is ( PINt -PINt-1)/PINt-1

* 100
PIN is price index.
GNP = nominal GNP(at current price ) / Real GNP(at constant
price) .

RATE OF GNP =
GNP DEFLATOR OF PRECEDING YEAR GNP DEFLATOR OF CURRENT YEAR
* 100
GNP DEFLATOR OF CURRENT YEAR