What is GDP?

• Gross domestic product (GDP) is a monetary measure of the value of

all final goods and services produced in a period (quarterly or yearly)
• Nominal GDP estimates are commonly used to determine the
economic performance of a whole country or region, and to make
international comparisons.
• Components of GDP :
a. Consumption (C)
b. Investment (I)
c. Government Spending’s (G)
d. Net Exports (X - M)
 Gini Coefficient
• In economics, the Gini coefficient, also known as
the Gini index or Gini ratio, is a measure of
statistical dispersion intended to represent the
income inequality, the wealth inequality, or the
consumption inequality within a nation or a social
group.
• A number between 0 and 1.
1  Represents perfectly unequal income, where
one family has all income, while the
other has none.
0 Represents perfectly equal income, where all
households has the same income
GDP on Paper
GDP on Paper