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The GDP formula is GDP = C + I + G + (Ex - Im). "C" represents the total consumer spending, "I" represents total investment by businesses, "G" is total government spending, "Ex" is exports and "Im" is imports.


Inflation generally increases when the gross domestic product (GDP) growth rate is above 2.5 percent due to several factors, such as demand for goods overstretching supply and higher wages in an ultra-competitive job market, according to Investopedia. When inflation sta...


The inflation rate calculated with the help of the gross domestic product, or GDP, deflator uses the price index that indicates how much of the GDP has changed in the previous year is based on changes in the price level. The GDP deflator is a measure of price inflation ...


The inflation rate is the average rate at which prices increase and purchasing power falls. With a yearly inflation rate of 4 percent, customers can buy 4 percent less this year than they could last year with the same amount of money.


The Federal Open Market Committee considers an inflation rate that increases annually by 2 percent to be a healthy indicator of price stability and maximum employment. A small level of inflation reduces the chance of harmful deflation caused by weak economic conditions,...


GDP, or gross domestic product, is a way to measure a country's economy by adding up the total amount of all services and goods produced within that country in a given year. GDP is used to help determine the health of an economy or to compare the economies of different ...


Real Gross Domestic Product is an inflation-adjusted measure of the value of economic output. Unlike GDP, real GDP is adjusted for price changes, which means it reflects the true growth of the economy.