1) GDP is the total monetary value of goods and services produced in a country in a year. It is calculated as the sum of consumption, government spending, business investment, and net exports.
2) India's GDP has been increasing each year from 2015 to 2018, with growth rates ranging from 6.98% to 8.17% annually. However, GDP growth declined in recent years.
3) Inflation in India is measured using the Wholesale Price Index. India's inflation rate fluctuated between 2.49% and 5.87% from 2014 to 2018, declining overall in this period. Inflation is caused by factors that increase demand and costs of production.
GDP, Inflation and unemployment for assessing Economic Health.MaherMubeen
Why do economists focus on GDP, Inflation, and unemployment for assessing the entire health of the economy? To know how much the countries are economically strong.
The document discusses key economic indicators used to measure a nation's performance in achieving economic goals of full employment, stable prices, and economic growth. It defines GDP as the total value of final goods and services produced, and real GDP as GDP adjusted for inflation. Unemployment is measured by the unemployment rate, and price levels changes by the Consumer Price Index. However, these measures are imperfect as CPI baskets may not reflect all spending, and unemployment excludes discouraged workers.
There are three main types of economic indicators - leading, lagging, and coincident. Leading indicators predict future economic trends, lagging indicators reflect past trends, and coincident indicators describe the current economic situation. Some key economic indicators discussed include the consumer price index (CPI), gross domestic product (GDP), unemployment rate, stock market, housing market, currency strength, and level of new business startups. Understanding a variety of economic indicators together can provide a more comprehensive view of the overall health of an economy.
Economic indicators provide information about economic performance and allow analysis of business cycles. Some key economic indicators mentioned in the document include GDP, fiscal deficit, Sensex stock index, CPI inflation index, HDI human development index, and balance of payments. GDP measures total economic output, fiscal deficit is the gap between government spending and revenues, Sensex tracks the Bombay stock exchange, CPI measures inflation, HDI assesses health, education and income, and balance of payments tracks international monetary transactions.
This document provides guidance on writing a 25-mark economics essay. It discusses key topics that may be covered in the essay questions such as economic growth, balance of payments, monetary and fiscal policy. For economic growth, it outlines the components of aggregate demand - consumption, investment, government spending, and net exports. It also discusses supply-side policies that can boost economic output. For the balance of payments, it defines the current account and factors included. It indicates that questions may assess the impact of changes in exports or imports on the UK economy, requiring analysis using aggregate demand and supply models and consideration of exchange rates.
The document summarizes Bangladesh's national budget for the 2016-17 fiscal year. Key points include:
- The total budget was Tk 3.41 trillion (equivalent to 17.37% of GDP)
- Tk 1.17 trillion was allocated for development expenditures including the Annual Development Programme
- Non-development expenditures were set at Tk 2.16 trillion, a 32% increase over the previous year
- Revenue collection was projected to be Tk 2.43 trillion, with the highest amounts coming from Value Added Tax and income/corporate taxes
- The budget projected a deficit of Tk 978.53 billion, representing less than 5% of GDP
The document provides an overview of fiscal policy from both conventional and Islamic perspectives. In the conventional view, fiscal policy uses tools like taxes and government spending to achieve economic goals like growth and stability. It discusses Keynesian, classical, and supply-side economics approaches. In the Islamic view, fiscal policy aims for both material and spiritual prosperity. It examines early Islamic practices like zakat and baitulmal that were used for economic recovery and welfare. The role of government is also to ensure people are protected from weaknesses and greed according to Islamic teachings.
This document summarizes a training session on macroeconomics. It begins with an introduction and overview of the session structure. It then covers key macroeconomic concepts including aggregate supply and demand, the business cycle, inflation and its measurement, monetary and fiscal policy responses. Sections also discuss the current state of the Indian economy, including GDP growth, trade trends, and recent fiscal measures. The session concludes with an interview question section and open discussion.
GDP, Inflation and unemployment for assessing Economic Health.MaherMubeen
Why do economists focus on GDP, Inflation, and unemployment for assessing the entire health of the economy? To know how much the countries are economically strong.
The document discusses key economic indicators used to measure a nation's performance in achieving economic goals of full employment, stable prices, and economic growth. It defines GDP as the total value of final goods and services produced, and real GDP as GDP adjusted for inflation. Unemployment is measured by the unemployment rate, and price levels changes by the Consumer Price Index. However, these measures are imperfect as CPI baskets may not reflect all spending, and unemployment excludes discouraged workers.
There are three main types of economic indicators - leading, lagging, and coincident. Leading indicators predict future economic trends, lagging indicators reflect past trends, and coincident indicators describe the current economic situation. Some key economic indicators discussed include the consumer price index (CPI), gross domestic product (GDP), unemployment rate, stock market, housing market, currency strength, and level of new business startups. Understanding a variety of economic indicators together can provide a more comprehensive view of the overall health of an economy.
Economic indicators provide information about economic performance and allow analysis of business cycles. Some key economic indicators mentioned in the document include GDP, fiscal deficit, Sensex stock index, CPI inflation index, HDI human development index, and balance of payments. GDP measures total economic output, fiscal deficit is the gap between government spending and revenues, Sensex tracks the Bombay stock exchange, CPI measures inflation, HDI assesses health, education and income, and balance of payments tracks international monetary transactions.
This document provides guidance on writing a 25-mark economics essay. It discusses key topics that may be covered in the essay questions such as economic growth, balance of payments, monetary and fiscal policy. For economic growth, it outlines the components of aggregate demand - consumption, investment, government spending, and net exports. It also discusses supply-side policies that can boost economic output. For the balance of payments, it defines the current account and factors included. It indicates that questions may assess the impact of changes in exports or imports on the UK economy, requiring analysis using aggregate demand and supply models and consideration of exchange rates.
The document summarizes Bangladesh's national budget for the 2016-17 fiscal year. Key points include:
- The total budget was Tk 3.41 trillion (equivalent to 17.37% of GDP)
- Tk 1.17 trillion was allocated for development expenditures including the Annual Development Programme
- Non-development expenditures were set at Tk 2.16 trillion, a 32% increase over the previous year
- Revenue collection was projected to be Tk 2.43 trillion, with the highest amounts coming from Value Added Tax and income/corporate taxes
- The budget projected a deficit of Tk 978.53 billion, representing less than 5% of GDP
The document provides an overview of fiscal policy from both conventional and Islamic perspectives. In the conventional view, fiscal policy uses tools like taxes and government spending to achieve economic goals like growth and stability. It discusses Keynesian, classical, and supply-side economics approaches. In the Islamic view, fiscal policy aims for both material and spiritual prosperity. It examines early Islamic practices like zakat and baitulmal that were used for economic recovery and welfare. The role of government is also to ensure people are protected from weaknesses and greed according to Islamic teachings.
This document summarizes a training session on macroeconomics. It begins with an introduction and overview of the session structure. It then covers key macroeconomic concepts including aggregate supply and demand, the business cycle, inflation and its measurement, monetary and fiscal policy responses. Sections also discuss the current state of the Indian economy, including GDP growth, trade trends, and recent fiscal measures. The session concludes with an interview question section and open discussion.
The document discusses several key macroeconomic indicators used to measure and understand a country's economy. It begins by explaining GDP as the total market value of all final goods and services produced within a country in a given period of time. It then discusses how GDP is calculated using the expenditure, income, and value added approaches. The document also covers other indicators like GNP, inflation rates, unemployment rates, and underemployment rates. It explains how to interpret and compare these figures across countries.
The Federal Government has broad responsibilities in maintaining the national economy. It monitors the economy by tracking indicators like GDP and unemployment. It works to strengthen the economy by promoting stability, growth, and high employment. The government also promotes productivity and innovation by funding research and protecting intellectual property, while helping workers and businesses adapt to technological changes.
This document discusses monetary policy and inflation. It defines inflation and describes its stages from creeping to hyperinflation. It identifies two types of inflation: demand-pull and cost-push. Causes and effects of inflation are explained. The objectives and instruments of monetary policy are outlined, including bank rate, cash reserve ratio, statutory liquidity ratio, open market operations, and others. The role of the State Bank of Pakistan in using these tools to influence money supply, interest rates, and inflation is discussed.
This document discusses key economic concepts including the circular flow of income, GDP, the economic cycle, recession, and economic indicators. It defines the circular flow of income as showing flows of goods and services between households and firms. GDP is defined as the total market value of goods and services produced within a country in a year. The economic cycle and recession refer to periods of decline and growth in economic activity. Economic indicators such as inflation, interest rates, and Euribor are also defined.
This document summarizes Sonny Bautista's semester 2 portfolio covering topics in macroeconomics including:
1. Macroeconomic models, economic growth, full employment, and price stability.
2. The circular flow of income and gross domestic product.
3. Boom and bust economic cycles and factors that influence GDP.
4. Demand-side fiscal and monetary policies and supply-side policies.
This document discusses inflation in India, including defining different types of inflation rates and causes of inflation. It outlines how inflation is measured in India using the Wholesale Price Index and Consumer Price Index. The document then analyzes current factors contributing to low inflation rates in India, such as falling international crude oil prices and lower food price increases. It also discusses potential consequences and sustainability issues regarding India's recent achievement of near-zero inflation rates.
The document defines inflation as a persistent increase in general price levels in an economy. It discusses the main causes of inflation including demand-pull, cost-push, and structural imbalances. Demand-pull inflation occurs when aggregate demand increases due to factors like rising incomes and investment. Cost-push inflation occurs when costs of production rise due to increasing input costs like wages and commodities. Inflation affects different groups in various ways - fixed income earners lose purchasing power while borrowers benefit from inflation. The government typically gains tax revenue during inflation. The document outlines various monetary and fiscal policy tools used by the RBI and government to control inflation.
The document discusses inflation in India, including its types, causes, measurement, and current trends. It provides details on key inflation indices like the wholesale price index and consumer price index. Recent inflation in India has fallen towards zero inflation due to several factors: a large drop in international crude oil prices, stagnant food prices, compressed demand from lower rural wages and spending, and tight monetary policy from the RBI. However, the document notes this decline may not be sustainable as the key drivers of falling prices are volatile and outside monetary policy control.
This document discusses fiscal policy, which refers to the government's use of spending and taxation to influence the economy. Fiscal policy works by increasing or decreasing government spending and tax levels, based on theories of British economist John Maynard Keynes. It is used alongside monetary policy to direct a country's economic goals. The document provides examples of how fiscal policy can be used in times of recession by lowering taxes to fuel growth or increasing government spending to create jobs. It also notes that fiscal policy affects different groups disproportionately and must be carefully monitored.
The document provides guidance on writing a 25-mark economics essay, including common question types, content areas to discuss, and components of aggregate demand and supply. It discusses how fiscal and monetary policy can be used expansionary or contractionarily to influence economic growth. The government faces difficulties boosting growth, as measures to increase demand risk higher inflation and balance of payments deficits, conflicting with objectives. Supply-side policies may help manage issues, requiring coordination of monetary and fiscal approaches for sustainable growth.
Fiscal policy as a means to prevent depressionGaurav Sinha
This document discusses how fiscal policy can be used to prevent economic recession. It defines fiscal policy as taxation, expenditure, and borrowing by the government. During a recession, characterized by high unemployment and falling GDP and prices, expansionary fiscal policy can play an important role. The government can increase spending on public works projects to directly and indirectly boost income, consumption, output and employment. It can also enact tax cuts to increase disposable income and aggregate demand. These fiscal stimulus measures utilize the multiplier effect to help pull the economy out of recession through discretionary policy changes and automatic stabilizers in the tax system.
1. This chapter discusses fiscal policy as a tool for stabilizing the economy through manipulating government spending and taxes.
2. It explores discretionary and automatic fiscal adjustments using the AD-AS model and covers problems like recognition lags that complicate fiscal policy effectiveness.
3. Evaluating fiscal policy involves examining standardized budgets that adjust for cyclical factors to determine if policy is expansionary or contractionary.
Fiscal policy is the means by which governments adjust taxes and spending to influence economic growth and stability. This document discusses several aspects of fiscal policy, including its objectives like mobilizing resources, accelerating growth, and providing economic infrastructure. It also discusses discretionary fiscal policy where governments deliberately manipulate taxes and spending to achieve goals like employment and price stability. The document provides definitions of fiscal policy, examples of expansionary and contractionary fiscal policy, and questions related to the topic.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
This document provides an introduction to macroeconomics, including its key topics and goals. It discusses that macroeconomics studies aggregate economic measures of an economy, compared to microeconomics which focuses on individual agents. The main macroeconomic goals covered are low unemployment, price stability, and economic growth. These goals can sometimes complement each other, such as low unemployment and high growth, but can also conflict, such as low unemployment and low inflation. It also outlines some of the key principles of economics, including scarcity, rational self-interest, opportunity costs, and that decisions are made at the margin.
This document provides an overview of macroeconomic policy tools including monetary policy and fiscal policy. It defines monetary policy tools such as open market operations, reserve requirements, and discount rates. It explains how expansionary and contractionary monetary policy impact the money market and goods market through changes in the money supply and interest rates. The document also defines fiscal policy tools such as government spending and taxes, and explains how expansionary and contractionary fiscal policy impact aggregate demand and output. Graphs and diagrams are used to illustrate these macroeconomic transmission mechanisms and effects on the AD-AS model.
Macroeconomic policies can influence economic activity through monetary policy and fiscal policy. Monetary policy uses interest rates and the money supply to impact aggregate demand, while fiscal policy uses government spending and taxation. Both aim to achieve objectives like economic growth and low unemployment, while maintaining price stability. Supply-side policies also aim to boost potential output through measures like tax reform, education and training programs.
This document discusses fiscal policy and its objectives of achieving high employment, stable prices, and increasing output over time through equitable distribution of national income. It describes how governments can use fiscal policy through taxation and government spending to impact aggregate demand and achieve macroeconomic goals. It provides details on budgets, deficits, surpluses, and debt. It also explains the multiplier effect of discretionary fiscal policy and how governments can use expansionary and contractionary fiscal policy to stimulate or contract the economy.
This document defines inflation and discusses its causes, effects, measurement, relationship to unemployment, and control measures. It outlines several theories of inflation including demand-pull, cost-push, and structural inflation. Causes of each type are described. The document also discusses measuring inflation through price indices, the difference between the WPI and CPI, core inflation, and reforms to the CPI. The effects of inflation on different groups like fixed income classes, borrowers, lenders, producers, and the government are analyzed. Fiscal and monetary policy measures to control inflation are outlined. India's inflation rates from 2012-2014 are reported.
The document discusses various concepts related to national income and inflation. It defines national income as the total value of goods and services produced in a country in a year. It describes different methods of measuring national income, including the product, income, and expenditure methods. It also discusses related terms like GDP, GNP, and per capita income. Regarding inflation, it defines inflation and outlines different types. It discusses factors that cause demand-pull and cost-push inflation and strategies that governments use to control inflation.
The document discusses Gross Domestic Product (GDP) and economic growth. It defines GDP as the total value of final goods and services produced within a country in a year. GDP is made up of consumer spending, investment, government spending, and net exports. A country's GDP is used to measure its economic growth and is an indicator for governments and decision-makers. The document also lists several drivers of economic growth, such as increases in physical and human capital, technology, trade, savings, and education. It provides examples of steps China has taken to reduce income inequality like increasing minimum wage and restricting officials' incomes.
"India in search of a way to harness the Inflation dragon" case study of Macr...Nikhil Gupta
This case study is part of the curriculum of Macro Economics India context. The presentation will give a clear idea of what are the Factors effecting inflation, Measures for controlling Inflation, Suggetion for Revaluating Rupee for controlling Inflation.
The document discusses several key macroeconomic indicators used to measure and understand a country's economy. It begins by explaining GDP as the total market value of all final goods and services produced within a country in a given period of time. It then discusses how GDP is calculated using the expenditure, income, and value added approaches. The document also covers other indicators like GNP, inflation rates, unemployment rates, and underemployment rates. It explains how to interpret and compare these figures across countries.
The Federal Government has broad responsibilities in maintaining the national economy. It monitors the economy by tracking indicators like GDP and unemployment. It works to strengthen the economy by promoting stability, growth, and high employment. The government also promotes productivity and innovation by funding research and protecting intellectual property, while helping workers and businesses adapt to technological changes.
This document discusses monetary policy and inflation. It defines inflation and describes its stages from creeping to hyperinflation. It identifies two types of inflation: demand-pull and cost-push. Causes and effects of inflation are explained. The objectives and instruments of monetary policy are outlined, including bank rate, cash reserve ratio, statutory liquidity ratio, open market operations, and others. The role of the State Bank of Pakistan in using these tools to influence money supply, interest rates, and inflation is discussed.
This document discusses key economic concepts including the circular flow of income, GDP, the economic cycle, recession, and economic indicators. It defines the circular flow of income as showing flows of goods and services between households and firms. GDP is defined as the total market value of goods and services produced within a country in a year. The economic cycle and recession refer to periods of decline and growth in economic activity. Economic indicators such as inflation, interest rates, and Euribor are also defined.
This document summarizes Sonny Bautista's semester 2 portfolio covering topics in macroeconomics including:
1. Macroeconomic models, economic growth, full employment, and price stability.
2. The circular flow of income and gross domestic product.
3. Boom and bust economic cycles and factors that influence GDP.
4. Demand-side fiscal and monetary policies and supply-side policies.
This document discusses inflation in India, including defining different types of inflation rates and causes of inflation. It outlines how inflation is measured in India using the Wholesale Price Index and Consumer Price Index. The document then analyzes current factors contributing to low inflation rates in India, such as falling international crude oil prices and lower food price increases. It also discusses potential consequences and sustainability issues regarding India's recent achievement of near-zero inflation rates.
The document defines inflation as a persistent increase in general price levels in an economy. It discusses the main causes of inflation including demand-pull, cost-push, and structural imbalances. Demand-pull inflation occurs when aggregate demand increases due to factors like rising incomes and investment. Cost-push inflation occurs when costs of production rise due to increasing input costs like wages and commodities. Inflation affects different groups in various ways - fixed income earners lose purchasing power while borrowers benefit from inflation. The government typically gains tax revenue during inflation. The document outlines various monetary and fiscal policy tools used by the RBI and government to control inflation.
The document discusses inflation in India, including its types, causes, measurement, and current trends. It provides details on key inflation indices like the wholesale price index and consumer price index. Recent inflation in India has fallen towards zero inflation due to several factors: a large drop in international crude oil prices, stagnant food prices, compressed demand from lower rural wages and spending, and tight monetary policy from the RBI. However, the document notes this decline may not be sustainable as the key drivers of falling prices are volatile and outside monetary policy control.
This document discusses fiscal policy, which refers to the government's use of spending and taxation to influence the economy. Fiscal policy works by increasing or decreasing government spending and tax levels, based on theories of British economist John Maynard Keynes. It is used alongside monetary policy to direct a country's economic goals. The document provides examples of how fiscal policy can be used in times of recession by lowering taxes to fuel growth or increasing government spending to create jobs. It also notes that fiscal policy affects different groups disproportionately and must be carefully monitored.
The document provides guidance on writing a 25-mark economics essay, including common question types, content areas to discuss, and components of aggregate demand and supply. It discusses how fiscal and monetary policy can be used expansionary or contractionarily to influence economic growth. The government faces difficulties boosting growth, as measures to increase demand risk higher inflation and balance of payments deficits, conflicting with objectives. Supply-side policies may help manage issues, requiring coordination of monetary and fiscal approaches for sustainable growth.
Fiscal policy as a means to prevent depressionGaurav Sinha
This document discusses how fiscal policy can be used to prevent economic recession. It defines fiscal policy as taxation, expenditure, and borrowing by the government. During a recession, characterized by high unemployment and falling GDP and prices, expansionary fiscal policy can play an important role. The government can increase spending on public works projects to directly and indirectly boost income, consumption, output and employment. It can also enact tax cuts to increase disposable income and aggregate demand. These fiscal stimulus measures utilize the multiplier effect to help pull the economy out of recession through discretionary policy changes and automatic stabilizers in the tax system.
1. This chapter discusses fiscal policy as a tool for stabilizing the economy through manipulating government spending and taxes.
2. It explores discretionary and automatic fiscal adjustments using the AD-AS model and covers problems like recognition lags that complicate fiscal policy effectiveness.
3. Evaluating fiscal policy involves examining standardized budgets that adjust for cyclical factors to determine if policy is expansionary or contractionary.
Fiscal policy is the means by which governments adjust taxes and spending to influence economic growth and stability. This document discusses several aspects of fiscal policy, including its objectives like mobilizing resources, accelerating growth, and providing economic infrastructure. It also discusses discretionary fiscal policy where governments deliberately manipulate taxes and spending to achieve goals like employment and price stability. The document provides definitions of fiscal policy, examples of expansionary and contractionary fiscal policy, and questions related to the topic.
Fiscal policy uses government spending and taxation to influence the economy. It aims to achieve stability without inflation or deflation. The budget estimates revenues and expenditures and is an anti-inflation tool to sustain growth. Revenues come from taxes, fees, loans, etc. and are spent on productive items like infrastructure or non-productive like defense. Fiscal policy can be neutral, expansionary, or contractionary depending on if spending equals, exceeds, or is less than revenues. The objectives are equal wealth distribution, savings, price stability, and economic stability. Limitations include inflexibility, statistics, and decision delays. Islam advocates equal distribution, zakat, and limiting spending imbalances.
This document provides an introduction to macroeconomics, including its key topics and goals. It discusses that macroeconomics studies aggregate economic measures of an economy, compared to microeconomics which focuses on individual agents. The main macroeconomic goals covered are low unemployment, price stability, and economic growth. These goals can sometimes complement each other, such as low unemployment and high growth, but can also conflict, such as low unemployment and low inflation. It also outlines some of the key principles of economics, including scarcity, rational self-interest, opportunity costs, and that decisions are made at the margin.
This document provides an overview of macroeconomic policy tools including monetary policy and fiscal policy. It defines monetary policy tools such as open market operations, reserve requirements, and discount rates. It explains how expansionary and contractionary monetary policy impact the money market and goods market through changes in the money supply and interest rates. The document also defines fiscal policy tools such as government spending and taxes, and explains how expansionary and contractionary fiscal policy impact aggregate demand and output. Graphs and diagrams are used to illustrate these macroeconomic transmission mechanisms and effects on the AD-AS model.
Macroeconomic policies can influence economic activity through monetary policy and fiscal policy. Monetary policy uses interest rates and the money supply to impact aggregate demand, while fiscal policy uses government spending and taxation. Both aim to achieve objectives like economic growth and low unemployment, while maintaining price stability. Supply-side policies also aim to boost potential output through measures like tax reform, education and training programs.
This document discusses fiscal policy and its objectives of achieving high employment, stable prices, and increasing output over time through equitable distribution of national income. It describes how governments can use fiscal policy through taxation and government spending to impact aggregate demand and achieve macroeconomic goals. It provides details on budgets, deficits, surpluses, and debt. It also explains the multiplier effect of discretionary fiscal policy and how governments can use expansionary and contractionary fiscal policy to stimulate or contract the economy.
This document defines inflation and discusses its causes, effects, measurement, relationship to unemployment, and control measures. It outlines several theories of inflation including demand-pull, cost-push, and structural inflation. Causes of each type are described. The document also discusses measuring inflation through price indices, the difference between the WPI and CPI, core inflation, and reforms to the CPI. The effects of inflation on different groups like fixed income classes, borrowers, lenders, producers, and the government are analyzed. Fiscal and monetary policy measures to control inflation are outlined. India's inflation rates from 2012-2014 are reported.
The document discusses various concepts related to national income and inflation. It defines national income as the total value of goods and services produced in a country in a year. It describes different methods of measuring national income, including the product, income, and expenditure methods. It also discusses related terms like GDP, GNP, and per capita income. Regarding inflation, it defines inflation and outlines different types. It discusses factors that cause demand-pull and cost-push inflation and strategies that governments use to control inflation.
The document discusses Gross Domestic Product (GDP) and economic growth. It defines GDP as the total value of final goods and services produced within a country in a year. GDP is made up of consumer spending, investment, government spending, and net exports. A country's GDP is used to measure its economic growth and is an indicator for governments and decision-makers. The document also lists several drivers of economic growth, such as increases in physical and human capital, technology, trade, savings, and education. It provides examples of steps China has taken to reduce income inequality like increasing minimum wage and restricting officials' incomes.
"India in search of a way to harness the Inflation dragon" case study of Macr...Nikhil Gupta
This case study is part of the curriculum of Macro Economics India context. The presentation will give a clear idea of what are the Factors effecting inflation, Measures for controlling Inflation, Suggetion for Revaluating Rupee for controlling Inflation.
This document discusses inflation control. It begins by introducing inflation and how it is measured, primarily through the Consumer Price Index and Wholesale Price Index. It then covers the main causes of inflation, including demand-pull, cost-push, wage-push, and currency depreciation. The document outlines several measures to control inflation, such as monetary policies like adjusting bank rates, cash reserve ratios, and open market operations. Fiscal policies for controlling inflation include managing government spending, taxation, and public borrowing. The document also provides a case study on hyperinflation in Zimbabwe and policies pursued in India to maintain inflation between 2-6%. It concludes that reasonable inflation of 3-6% is ideal for economic growth while higher rates
Here are the answers to the quiz questions:
1. Gross National Product
2. Gross Domestic Product
3. Expenditure approach and income approach
4. C (Consumption), I (Investment), G (Government Spending), X-M (Net Exports)
5. The formula for the GDP deflator is: GDP Deflator = Nominal GDP / Real GDP
This document provides an overview of the course Economics for Admin (Eco 1642) at a university. It discusses the following key points in 3 sentences:
The course covers basic macroeconomics topics like money, financial markets, central banking, and economic development theories. It aims to explain the difference between micro and macroeconomics, and cover macroeconomic objectives like growth, employment, and inflation. The document also outlines the learning outcomes and content for two modules, which will measure national income, prices, employment, and discuss business cycles and the informal sector.
This document summarizes a magazine presentation on inflation. It defines inflation as a general rise in prices over time which reduces purchasing power. The presentation discusses the current retail inflation rate in India, causes of inflation including cost pressures and demand increases, and effects like higher profits but also reduced living standards. It provides inflation rates by Indian state and defines economic terms. In conclusion, it notes inflation is necessary for growth but too high a rate hurts savings and consumer spending.
This document discusses different aspects of inflation including definitions, types (demand-pull and cost-push), causes, effects, and measures to control inflation. It defines inflation as a rise in the general price level and notes that it occurs when money supply grows faster than the rate of production of goods and services. The two main types of inflation are demand-pull, which is due to excess demand, and cost-push, which is due to increases in production costs. Fiscal, monetary, and general policy measures can be used to control inflation.
This document discusses various aspects of inflation including definitions, types, causes, effects, and measures to control inflation. It provides information on how inflation is measured using indices like the Consumer Price Index and Wholesale Price Index. Theories on inflation from Keynesian and Monetarist perspectives are presented. The impact of COVID-19 on inflation in India, with food inflation as a major contributing factor, is also summarized.
This document outlines the broad objectives of economic policy and management in Australia. It discusses objectives such as economic growth, full employment, price stability, external stability, environmental sustainability, and equitable distribution of income. Specific policies aimed at achieving these objectives are also mentioned, including fiscal policy, monetary policy, and microeconomic reforms. The document also provides an overview of the goals of Australian economic policy in 2022, which include economic recovery from COVID-19, reducing unemployment, increasing long-term productivity and growth, maintaining low inflation, and improving sustainability.
This document discusses inflation in India, including its causes and effects. It provides definitions of inflation and deflation, and shows India's inflation rates from 1950-2011. Inflation is problematic as it redistributes wealth and income in unequal ways. The main causes of inflation in India are an increase in the money supply, higher disposable income, deficit financing, agricultural price policies, and inadequate industrial growth. Controlling inflation requires focusing on its underlying drivers, such as reducing demand if demand-pull inflation is the issue. Recommended measures include fiscal consolidation, prioritizing infrastructure to support growth, and ensuring food supply stability.
Presentation Topic is : Inflation Situation in The Economy of Bangladesh.
Topic Covered:
• INFLATION
• REASON OF INFLATION
• TYPES OF INFLATION
• CAUSES OF INFLATION
• IMPACT OF INFLATION IN
INTERNATIONAL ECONOMY
• GLOBAL REVIEW OF INFLATION
• INFLATION OUTLOOK IN BANGLADESH
• MEASURES TO CONTROL INFLATION
• PEOPLE & LOCAL MARKET REVIEW IN
BANGLADESH
National income refers to the total value of final goods and services produced in a country in one year. There are several ways to measure national income, including GDP, GDI, NNP, and NI. GDP is the total market value of goods and services produced within a country in a year. It can be calculated using the production, income, and expenditure approaches. Other key metrics include per capita income, which is total income divided by population, and NNP and NDP, which are GDP and GNP minus depreciation. National income data provides information on a country's economy, growth trends, production sectors, living standards, and helps guide government policymaking.
In any economy monetary and fiscal policies are used as powerful instruments to maintain a steady growth in the economy. The fiscal policy made by the government ,monetary policy controlled by RBI have are immensely reflected in the industrial policy of the economy.Thus India's updated industrial policy is oriented towards global competition.
Current fiscal and monetary industrial policy in india revisedFBS Business School
Monetary and fiscal policies are two important instruments that can be put to use by government in order to achieve stability in the economy.While monetary policy is implemented by RBI, the fiscal policy is implemented by the government.
This document discusses monetary and fiscal policies used to manage inflation. It defines inflation and outlines its stages and types. It then discusses the causes of inflation including demand-pull and cost-push factors. The effects of inflation on various groups are also outlined. The document also defines monetary and fiscal policies, compares the two, and lists the objectives and instruments of monetary policy such as bank rate, cash reserve ratio, and open market operations.
National income is the total value of goods and services produced within a country in a given period. It indicates the overall health of a country's economy. There are four main methods to measure national income: income method, product method, expenditure method, and value added method.
Monetary and fiscal policies can be used to stabilize the economy during economic fluctuations. Monetary policy, managed by central banks, involves managing money supply and interest rates. Fiscal policy involves government spending and taxation decisions. Both tools can accelerate or moderate economic growth as needed, such as using expansionary fiscal policy during recessions.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
3. “The monetary value of all the finished goods and
services produced within a country's borders in a
specific time period though GDP is usually
calculated on an annual basis. It includes all of
private and public consumption, government
outlays, investments and exports less imports
that occur within a defined territory.
3
Definition of Gross Domestic
Product(GDP)
4. GDP=C + G + I + NX
where:
"C" is equal to all private consumption, or consumer spending, in a
nation's economy
"G" is the sum of government spending
“I” is the sum of all the country's businesses spending on capital
"NX" is the nation’s total net exports, calculated as total exports
minus total imports. (NX =Exports - Imports)
4
5. 5
➔ First its equal to the total expenditure for all final goods
and services produced within the country in a specified
period of time (usually a 365-days year )
➔ Second ,its equal to the sum of the value added at every
stage of production by all the industries ,plus taxes and
minus subsidies on products.
➔ Third ,it is equal to the sum of the income generated by
productionlike compensation of employees ,taxes on
production and imports less subsidies , and gross
operating surplus.
6. 6
• India’s GDP for 2018 was $2,726.32B, a 2.78% increase
from 2017.
• India’s GDP for 2017 was $2,652.55B, a 15.81% increase
from 2016.
• India’s GDP for 2016 was $2,290.43B, a 8.88% increase
from 2015.
• India’s GDP for 2015 was $2,103.59B, a 3.16% increase
from 2014.
8. • India GDP growth rate for 2018 was 6.98%, a 0.19% decline from 2017.
• India GDP growth rate for 2017 was 7.17%, a 1% decline from 2016.
• India GDP growth rate for 2016 was 8.17%, a 0.17% increase from 2015.
• India GDP growth rate for 2015 was 8.00%, a 0.59% increase from 2014.
10. • India GDP per capita for 2018 was $2,016, a 1.72% increase from
2017.
• India GDP per capita for 2017 was $1,981, a 14.59% increase from
2016.
• India GDP per capita for 2016 was $1,729, a 7.7% increase from
2015.
• India GDP per capita for 2015 was $1,606, a 2.02% increase from
2014.
12. 12
Reasons for declining GDP
• The latest decline was driven largely by slower private consumption and near stagnation in
manufacturing, which was growing by 12% just a year ago. The rate of growth in agriculture
more than halved in the June quarter.
• Nominal GDP growth, a measure of GDP without adjusting for inflation, rose just 8%, the least
in the current series of national accounts going back to FY12, indicating a deep slowdown.
Comparing across different series, it could be the lowest since FY03, economists said.
• Consumption, the bedrock of growth in the past few years, collapsed to an 18-quarter low of
3.1% from 10.6% in the March quarter, pointing to fragile sentiment. Investments grew 4%, up
from 3.6% in the previous quarter.
• The slowdown in investment and consumer demand derailed manufacturing, which grew
just 0.6%. A meagre 2% rise in farm sector added to the demand slowdown
13. Why is India’s Gross Domestic Product falling?
● Sharp decline in overall demand:
● Sharp fall in consumption
● Wrong procedure in the GST implementation
● Decline in investment
● Poor condition of banking sector
● Agricultural crisis
13
14. List of measure made:
╺ To boost liquidity in the market, the government has cleared dues
worth more than 60% of 32 CPSEs in the last two months.
╺ The govt provided support to NBFCs/HFCs under the partial
credit guarantee scheme. The govt sanctioned support for Rs 4.47
lakh crore to NBFCs & HFCs which includes Rs 1.29 lakh crore for
pool buyout of assets.
╺ Within two days of cabinet approval, 17 proposals worth more
than Rs 7,000 crore approved. Proposals worth Rs 20,000 crore
will be approved over next two weeks under the partial credit
guarantee scheme.
14
15. On investment side, the government has taken steps to
boost investment, support real estate, credit expansion,
corporate tax and bank recapitalization.
FDI inflows of $35-billion in first half of FY20 vs $31 billion in
the same period last year has been achieved
15
16. How to increase economic growth
Economic growth is an increase in national output/income (higher real GDP).
There are two main aspects of economic growth:
➔Aggregate demand (AD) (consumer spending, investment levels, government spending,
exports-imports)
➔Aggregate supply (AS) (Productive capacity, the efficiency of economy, labour productivity)
We need to see a rise in demand and/or an increase in productive capacity:
16
17. Economic growth
AGGREGATE DEMAND CAN INCREASE FOR VARIOUS REASONS.
• LOWER INTEREST RATES – REDUCE THE COST OF
BORROWING AND INCREASE CONSUMER SPENDING AND
INVESTMENT.
• INCREASED REAL WAGES – IF NOMINAL WAGES GROW
ABOVE INFLATION THEN CONSUMERS HAVE MORE
DISPOSABLE TO SPEND.
• HIGHER GLOBAL GROWTH – LEADING TO INCREASED EXPORT
SPENDING.
• DEVALUATION, MAKING EXPORTS CHEAPER AND IMPORTS
MORE EXPENSIVE, INCREASING DOMESTIC DEMAND.
• RISING WEALTH, E.G. RISING HOUSE PRICES CAUSE
CONSUMERS TO SPEND MORE (THEY FEEL MORE CONFIDENT
AND CAN REMORTGAGE THEIR HOUSE.
17
18. Growth in productivity
THIS IS GROWTH IN AGGREGATE SUPPLY (PRODUCTIVE
CAPACITY). THIS CAN OCCUR DUE TO:
• DEVELOPMENT OF NEW TECHNOLOGY.
• INTRODUCTION OF NEW MANAGEMENT
TECHNIQUES, E.G. BETTER INDUSTRIAL RELATIONS
HELPS WORKERS BECOME MORE PRODUCTIVE.
• IMPROVED SKILLS AND QUALIFICATION.
• MORE FLEXIBLE WORKING PRACTICES – WORKING
FROM HOME, SELF-EMPLOYMENT.
• INCREASED NET MIGRATION – ESPECIALLY
ENCOURAGING WORKERS WITH THE SKILLS THAT
ARE IN SHORT SUPPLY (E.G. BUILDERS, FRUIT
PICKERS)
• RAISE RETIREMENT AGE AND THEREFORE
INCREASING THE SUPPLY OF LABOR.
• PUBLIC SECTOR INVESTMENT
18
19. To what extent can the government
increase economic growth?
A government can try to influence the rate of economic growth through
demand-side and supply-side policies,
╺ Expansionary fiscal policy – cutting taxes to increase disposable
income and encourage spending. However, lower taxes will increase the
budget deficit and will lead to higher borrowing. The expansionary fiscal
policy is most appropriate in a recession when there is a fall in consumer
spending.
╺ Expansionary monetary policy (now usually set by independent
Central Bank) – cutting interest rates can boost domestic demand.
╺ Stability. A key function of the government is to provide economic and
political stability which enables the usual economic activity to take
place. Uncertainty and political tension can discourage investment and
economic growth.
.
19
21. Objective:
❖ To study the causes and effects of
inflation in the Indian economy and
analyze its trends in the past few
years.
21
22. What is Inflation?
❖ Inflation can be defined as a rise in the general
price level and therefore a fall in the value of
money that is it takes more currency units to buy
the same amount of goods and services.
❖ Inflation occurs when the amount of buying
power is higher than the output of goods and
services.
❖ Inflation also occurs when the amount of money
exceeds the amount of goods and services
available.
22
23. Inflation In India
❖ inflation is most closely observed economic variables in India as
it has considerable influence on the life of an average consumer.
❖ Most of the developed countries use the Consumer Price Index
CPI to calculate Inflation, but in India Wholesale Price Index WPI
is used.
❖ WPI is generally used in India because they are many problems
associated with the CPI.
❖ Economic survey 2008-09 depicts that the years 2000-01,2004-
05,2008-09 show the highest average rates of inflation with
2008-09 being the highest in the decade.
23
24. 24
• India inflation rate for 2018 was 4.86%, a 2.37%
increase from 2017.
• India inflation rate for 2017 was 2.49%, a 2.45%
decline from 2016.
• India inflation rate for 2016 was 4.94%, a 0.93%
decline from 2015.
• India inflation rate for 2015 was 5.87%, a 0.48%
decline from 2014.
25. Major Causes of Inflation in India
There can be two set of factors that can cause inflation in the
economy.
❖Demand Pull Inflation
❖Cost Push Inflation
25
26. Cost Push Inflation
Cost-push inflation, or the decrease in the
aggregate supply of goods
and services stemming from an increase in the cost
of production.
An increase in the costs of raw materials or labor
can contribute to cost-
pull inflation.
27. 27
Demand-pull inflation
Demand-pull inflation, or the increase in aggregate demand,
Demand-pull inflation can be caused by an expanding economy,
increased government spending, or overseas growth.
28. Demand Pull Factors Of Inflation
❖Rise in population
❖Black money
❖Rise in income
❖Excessive government expenditure
28
29. Cost Push Factors of Inflation
❖Infrastructure bottlenecks which lead rise in
production and distribution costs.
❖Rise in Minimum Support Price (MSP).
❖Rise in international prices.
❖Hoarding and black marketing.
❖Rise in indirect taxes.
29
30. Measures of inflation
╺ Monetary Measures:
❖ Credit Control
❖ Demonetization of currency
❖ Issue of new currency
Fiscal Measures:
❖Reduction in Unnecessary Expenditure
❖ Increase in Taxes
❖ Increase in Savings
30
31. Control of Inflation
As far as the demand side is concerned restrictive
monetary and fiscal policy are commonly used to
control inflation.
In supply side inflation the restrictive monetary and
fiscal policy are not appropriate to control which is
because the rising prices and output below the full
employment level
31
32. Relationship between gdp and inflation
When the economy is healthy, there is usually low unemployment and wage increases, as businesses demand labor to meet
the growing economy.
Due to low unemployment and increase in wages, there is an increase in the purchasing power of people. This leads to an
increase in demand for goods and services, which leads to an increase in general price levels.
Hence Inflation will Increase due to an Increase in GDP.
However, if the GDP growth rate is speeding up too fast, the Federal Reserve/Reserve Bank may raise interest rates to stem
inflation—or the rising of prices for good and services. That could mean loans for cars and homes would be more expensive.
Businesses too would find the cost of borrowing for expansion and hiring to be on the rise. In short, the Federal
Reserve/Reserve Bank will try to remove some money from the economy to reduce the spending power of people, and gain a
control on the rising general prices. A fall in the purchasing power will lead to a fall in demand, which will lead to a fall in
production, resulting in a fall in the GDP of the nation.
33. 33
THANK YOU
SUBMITTED TO:
PROF. MS. SHALI BOPANA
(MACROECONOMICS)
SUBMITTED BY:
APOORVA GUPTA
MOHITA AHUJA
VIDIT JAIN.
References :
● JSTOR
● ACADEMIA
● Economicsdiscussion.net
● quora