Core concepts
- 01Business cycle phases: expansion, peak, contraction (recession), trough, recovery.
- 02GDP: market value of final goods & services produced within domestic territory.
- 03GNP = GDP + Net Factor Income from Abroad.
- 04NNP = GNP − Depreciation.
- 05Three methods: production (value added), income, expenditure.
Flowchart summary
Business Cycle GDP ^ Peak Peak | /\ /\ | / \ / \ | / \ / |/ \ / +--Trough----- Time Expansion -> Peak -> Contraction -> Trough -> Recovery
Exam-critical pointers
- ⭐India uses 2011-12 as base year for GDP deflator.
- ⭐Transfer payments not included in national income (pensions to retirees from government).
- ⭐Distinguish GDP (territorial) from GNP (national — adds NFIA).
- ⭐MOSPI (Ministry of Statistics & Programme Implementation) releases India's GDP data.
Make it click