The Bakery Micro-Economy
The little bakery.
- Nominal GDP
- ₹20,0001,000 × ₹20
- Real GDP
- ₹20,0001,000 × fixed ₹20
- Deflator
- 100Nominal ÷ real × 100
Deflator 100 · dashed outline: ₹20,000 starting batch. Both bars share the ₹0–₹80,000 scale.
More bread or a different price? You’re in charge. 1000 loaves at ₹20. Nominal GDP ₹20,000, real GDP ₹20,000, deflator 100. 0 of 3 discoveries unlocked.
About this visual
Nominal gross domestic product (GDP) uses today’s price. Real GDP values the bread at a fixed ₹20 price. Each experiment resets the other input. These educational values are separate from India’s published figures. GDP does not show how income is distributed or how your household’s costs changed.
Read the official GDP explanationAbout this visual
You control the loaves and their price. The quantities are illustrative; the arithmetic is exact. Nothing changes until you choose an experiment.
Make more. Bake more bread at the fixed ₹20 price. Real output and nominal value rise together because production increases.
Change the price. Keep the batch the same and change its price. Nominal value responds; output at the fixed base price does not.
Put them together. Combine the two changes. A 10% output rise and 25% price rise produce 37.5% more nominal value: 1.10 × 1.25 − 1.
From one bakery to a national assumption.
A national growth experiment
About this visual
Use a published same-quarter prior-year observation as your starting point. Explore how an assumed real growth rate changes output at fixed prices.
Meet the baseline. The baseline is the same quarter one year earlier, in the selected GDP base series. It is an observed amount, not an invented starting point.
Try an assumption. Move the slider or enter a growth rate. Scenario GDP = prior-year real GDP × (1 + assumed growth). This is educational arithmetic, not a forecast.
Compare and reset. Compare your assumption with the published observation. Reset whenever you want. These experiments do not model feedback between sectors.
Data & sources · national accounts concepts
A plain-language guide to GDP
- GDP · domestic output
- Final goods and services produced inside the economy during a reporting period. GDP alone does not measure everyone's well-being.
- Nominal and real
- Nominal uses current prices. Real uses reference prices to measure output. Compare consistent periods, bases and release vintages.
- GVA · value added
- Output minus intermediate inputs. GDP at market prices = GVA at basic prices + taxes on products − subsidies on products.
- GNI · residents' income
- GDP + net primary income from abroad. Residence determines the boundary, rather than citizenship or ownership.
- Gross, net and per person
- Net measures deduct consumption of fixed capital (depreciation). Per-capita income is an average; it is not your salary.
- The expenditure view
- GDP = C + I + G + (X − M): consumption, investment, government final consumption and net exports. Buying existing shares is not new production. Transfers are not government final consumption.