Gross
Domestic Product (GDP)
GDP is the total of all goods and
services which is produced by the economic in a limited time frame. We
calculate the GDP on two basics- first is GDP with real data in which we assume
a particular year as a base and use that year price index to calculate the GDP.
In second method, we calculate the GDP with current year price index; we call
it GDP with marker price. In other word, GDP at market price - it is the total
market value of production (goods and services) which is produced by an
economic in a financial year.
We calculate our GDP with three
methods like –
·
Production
Method -
·
Expenditure
Method -
·
Income
Method -
 |
| Gross Domestic Product GDP सकल घरेलू उत्पाद |
GDP at Factor Cost ( साधन लागत पर ) -
There are lot of production
factor in the market which produce different – 2 goods and services in a
limited time frame or a financial year. Every factor receives an amount against
the efforts or work which is done by him, so if we add all the wages paid to
the factors, we are able to calculate the GDP at Factor Cost. In other words,
we add all the net value which is added at different stage of production.
GDP at Factor Cost = Net value Added
+depreciation.
Net Domestic Product (NDP) –
Our capital goods use in
production for a long run, so every year these machine have depreciation and
lost a part of value. Every machine has depreciation like machine, equipment or
building etc. So, for Net Domestic Product we must deduct the depreciation for
GDP.
NDP = GDP – depreciation.
GDP at Nominal Price – Calculation of our GDP at current
year price index.
GDP at Real Price – Calculation of our GDP at a base
year price index like 1981, 1991, 2000 or 2011 etc.
