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Real GDP
Real GDP

... consumers. Thus, an increase in the price of goods bought only by firms or the government will show up in the GDP deflator, but not in the CPI. Also, another difference is that the GDP deflator includes only those goods and services produced domestically. Imported goods are not a part of GDP and the ...
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Chapter 2 - eco - LazyBone Publications
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... economy of a country. Moreover, it does not at all consider economic or monetary concept. Hence, it is a poor measure of economic development as well as economic growth. Inspite of these drawbacks, P.Q.L.I. is considered as an improvement over traditional measure of economic welfare. However, recent ...
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Consumer price index



A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI is, along with the population census and the USA National Income and Product Accounts, one of the most closely watched national economic statistics.
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