What Is GDP?
GDP — gross domestic product — measures the total value of goods and services a country produces. Learn how it is calculated and what it does not tell you.
Economics
Articles, guides and definitions about Economics — part of Finance on Worldlession.
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Articles in Economics (2)
What Is Inflation?
Inflation is the gradual rise in prices over time, which reduces what money can buy. Learn what causes it, how it is measured and why central banks watch it closely.
Frequently asked questions
What is the difference between GDP and GNP?
GDP measures production within a country's borders, regardless of who owns the productive assets. GNP (gross national product, now usually called GNI — gross national income) measures production by a country's residents and firms, wherever in the world it happens. For most large economies the two are close; they diverge for countries with big foreign-owned sectors or large diaspora remittances.
Is inflation always bad?
No. Low, stable inflation of around 2% a year is considered normal and healthy — central banks actively target it. It becomes harmful when it is high, volatile or unpredictable, because then it erodes savings and makes planning difficult.