This PPT is related to the variable in our economy. It is Economic measure that can vary over a range of values.

1. Economic Variable
By:- Nirav Mevcha

2. What is Economic Variable?
 Economic measure that can vary over a range of values.
 Interrelatedness & Interdependence in nature.
 Ex. GDP, Unemployment Rate, etc.

3. Gross Domestic Income(GDP)
 GDP is sum of Goods & Services produced.
 indicator of a country's standard of living.
 GDP= C + I + G + (X-M)
 Two Types of GDP
 Real GDP
Nominal GDP
 4.80 percent in the third quarter of 2013

4. Unemployment Rate
 Unemployment means lack of jobs.
 Unemployed Rate = (Unemployed People/ Labor
Force)*100
The Unemployment Rate
Frictional
Cyclical
 As per July-2013 rate is 9.9%

5. Inflation
 Is a persistent increase in the general price level
 Hyperinflation are caused by an excessive growth of
the money supply
 Inflation rate is calculated by the movement or change
in a price index
 7.52 % in November of 2013

6. Interest Rate
 Rate at which interest is paid by a borrower.
 Expressed as a percentage of the principal for a period of
one year.
 Nominal interest rate
Does not take into account the effects of inflation
 Real interest rate
 Does take into account the effects of inflation
 Recorded at 7.75% by RBI

7. Exchange Rate
 Is the rate at which one currency will be exchanged
for another
 Spot exchange rate
 Forward exchange rate
 Different buying rate and selling rate