The document discusses economic variables, highlighting their interrelatedness and examples such as GDP and unemployment rate. It defines GDP, types of GDP, and explains the calculation of the unemployment rate, noting the rate in July 2013 as 9.9%. Additionally, it covers inflation, interest rates, and exchange rates, providing definitions and their importance in economic measurement.

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