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Business and Management, Education

Economic terms That Everyone Should Know

585Sun, 05 Jul 2020 14:58:23 +0530 arpitakarmakar030615

Real GDP : GDP (Gross Domestic Product) The value of Total gross domestic product all the goods and service produced for Money in the Economy.

Nominal GDP: GDP evaluated at current market prices. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation. 

Inflation and Deflation:Inflation is defined as a rise in the overall price level, and deflation is defined as a fall in the overall price level. In order to abstract from changes in the overall price level

Net national product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period.

Fiscal Policy :The spending and taxing activities of government constitute its fiscal policy.

Equilibrium: In neoclassical economics, equilibrium exists when supply equals demand for a particular commodity. 

Dividends: Many companies pay a cash dividend (quarterly or annually) to the owners of its shares. This is an enticement to investors to purchase that company’s shares, and represents a way of distributing some of a company’s profits to its ultimate owners. 

GST:Goods and Services Tax is an indirect tax used in India on the supply of goods and services

Exchange Rate: The “price” at which the currency of one country can be converted into the currency of another country.

Deficit: When a government, business, or household spends more in a given period of time than they generate in income, they incur a deficit. A deficit must be financed with new borrowing, or by running down previous savings.

MRP:  maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh.However, retailers may choose to sell products for less than the MRP. 

Net worth is the difference between the asset and the liability of an individual or a company.

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