Economics: Basics
Foundational economics covering key terminology, national income measurement, the circular flow model, intermediate and final goods, depreciation, types of expenditure, capital formation, the concept of residents, national income aggregates like GNP, NNP, and GDP, the three sectors of the Indian economy, methods of GDP calculation, NFIFA, India's pre-2015 and post-2015 national income frameworks, the Expenditure Method of GDP calculation, the difference between Actual GDP and Potential GDP including the output gap and demand-pull inflation, and international GDP comparison using Market Exchange Rate (MER) and Purchasing Power Parity (PPP)
Topics
Fundamental Economics Terms
Core economics vocabulary: microeconomics vs macroeconomics, demand, supply, market forces, inflation, and open vs closed economies
National Income and Circular Flow
How economists measure a country's total output, the difference between nominal and real national income, and how money circulates between households, firms, government, and the financial sector
Final Goods, Depreciation, and Types of Expenditure
Understanding the distinction between intermediate and final goods, how capital loses value over time through depreciation, and the three major types of spending on final goods in an economy
Capital Formation, Residents, and National Income Measures
Understanding gross domestic capital formation, the concept of normal residents, and the four key national income aggregates: GNP, NNP, GDP, and their relationships
GDP Calculation and Sectors of the Indian Economy
How India's GDP is calculated, the agency responsible for it, and the three major sectors of the Indian economy with their sub-sectors and contributions
Methods of GDP Calculation and National Income Before 2015
The two methods used to calculate GDP in India: Value Added Method and Income Method, along with Net Factor Income from Abroad (NFIFA) and how India calculated national income before the 2015 revision
National Income After 2015 and the Expenditure Method
How India revamped its national income calculation after 2015 by introducing Basic Prices and GDP at Market Prices as the official measure, along with the Expenditure Method of GDP calculation
Actual GDP vs Potential GDP and the Output Gap
Understanding the difference between what an economy actually produces and what it could produce, the output gap formula, and what each scenario signals about economic health
International Comparison of GDP: Exchange Rates, MER and PPP
How countries compare their GDP figures using exchange rates, the difference between Market Exchange Rate and Purchasing Power Parity, and why India's global rank changes depending on which method is used