National Income and Inflation

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What is national income?

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National income refers to the total value of all goods and services produced in a country over a specific period, usually a year.

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What are the methods of measuring national income?

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The methods include the production method, income method, and expenditure method.

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What are the types of national income?

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Types include Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP), and Net Domestic Product (NDP).

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What are the problems in measuring national income?

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Problems include underreporting, informal economy, inflation adjustments, and differences in valuation.

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What is inflation?

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Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.

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What are the types of inflation?

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Types include demand-pull inflation and cost-push inflation.

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What are the theories of inflation?

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Theories include the Quantity Theory of Money, Demand-Pull Theory, and Cost-Push Theory.

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What is demand-pull inflation?

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Demand-pull inflation occurs when demand for goods and services exceeds supply.

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What is cost-push inflation?

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Cost-push inflation occurs when the costs of production increase, leading to a decrease in supply.

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How is inflation measured in India?

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Inflation in India is measured using the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).