Describe GDP, GNI, and PPP.

Expert Solution

Answer :-

GDP :-

GDP is the market value of the goods and services produced by labour and property located in a certain country.

There are are the three ways of describing GDP;

1. GDP is the value of the final goods and services produced in an economy during a given period.

2. GDP is the sum of value added in the economy during a given period.

3. GDP is the sum of incomes in an economy during a given period.

Real GDP is GDP expressed in current prices while nominal GDP is GDP expressed in constant, or unchanging, prices.

GNI:-

Gross domestic income (GNI) shows the values of goods and services that leave the country and adds the amount of money the country gets to keep.

By dividing GNI by the total population, you can find the amount of money people contributed to a countries wealth on average.

PPP :-

Point to Point Protocol provides a standard method of encapsulating Network Layer protocol information over point-to-point links.

PPP also defines an extensible Link Control Protocol, which allows negotiation of an Authentication Protocol for authenticating its peer before allowing Network Layer protocols to transmit over the link.

PPP encapsulates data frames for transmission over Layer two physical links.

PPP establishes a direct connection using serial cables, phone lines, trunk lines, cellular telephones, specialized radio links, or fiber-optic links.

Rahul Sunny answered 2 years ago

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