Gross Domestic Product (GDP)

GDP

Gross domestic product is the market value of all final goods and services produced within a country during a given period of time.

GDP = C + I + G + Ex

1. C   = Consumption
2. I    = Investment  
3. G   = Government Spending
4. Ex  = Net Exports

Philip Curve

In economics, the Philips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result in an economy.  -Wikipedia

Philip Curve

Inflation

In economics, inflation is a sustained increase in the general price level of good and services in an economy over a period of time. When the general price level rises each unit of currency buys goods and services.



What Causes Inflation?

1. Demand Pull Inflation: Inflation caused primarily by an increase in aggregate demand.
2. Cost Push Inflation: Inflation caused primaroly by a decrease in aggregate supply.
3. Wage Price Spiral: Higher prices lead to demands for higher wages, which,when granted ,lead to higher producer cost, which lead to higher prices and so on.

Inflation in Bangladesh