Economics Content List
Unemployment rate is directly related to the economic activity of the country. Unemployment rate increases with lower economic activity as companies cut jobs to sustain the rough weather and Government and companies recruit less due to falling demand of services and products. That’s why unemployment rate is used as an important indicator of GDP activity […]Continue Reading... No Comments.
Inflation is measured by the Inflation Rate which is calculated based on the price increase of goods and articles over a period of time compared to price during the same period last year. Two widely used Inflation rates are WPI (Wholesale Price Index) and CPI (Consumer Price Index). Wholesale Price Index (WPI) The wholesale price […]Continue Reading... No Comments.
Inflation is the continuous increase in price of goods and products over a period of time. When the price of general articles or items goes up, it reduces the value of the domestic currency as the same currency is able to buy lesser quantity because of price increases. This is called the erosion in the […]Continue Reading... No Comments.
Purchasing Power Parity (PPP) theory is based on the concept that two similar products should be valued same in two different countries considering the currency exchange rate. This theory supports the long-term equilibrium currency exchange rates in the world. Using the PPP method, the currency exchange rate can be calculated for each country. Now local […]Continue Reading... No Comments.
GDP growth specifies the growth in GDP or the growth in the total value of all the goods and services produced by a country within a period of time. It is measured by the growth compared to same period one year before. Suppose a country’s GDP was USD 50 billion during first quarter of fiscal […]Continue Reading... No Comments.
GNP or Gross National Product is also used with GDP to denote the size of an economy or country. The difference between GDP and GNP is because of their scope of calculation. GDP is calculated based on the location or region where GNP is calculated based on Ownership or nationality. As we know GDP is […]Continue Reading... No Comments.
Expenditure approach is the most popular approach to calculate the GDP of a country. It calculates the total spending by the individuals (citizens) and Government to reach out the GDP figure. As per the expenditure method the GDP is calculated as GDP = Consumption (C) + Investment (I) + Government Spending (G) + […]Continue Reading... No Comments.
GDP or Gross Domestic Product denotes the market value of all the goods and services produced within a country or a specific region for a given period of time. The goods include the manufactured products, agricultural products and all types of natural resources. The region can be a part of a country or a combination […]Continue Reading... No Comments.
There are different schools of economic thought that came during different time periods in the past and tried to explain economic phenomena Classical Economics (1776 – 1936) Keynesian Economics (1936 – 1970s) Monetarism (since 1950s) New Classical Economics (since 1970s) New Keynesians (since 1970s) Classical Economics The classical economic theories first came in eighteenth and […]Continue Reading... No Comments.
As we know, Macroeconomics deals with the issues and parameters that affect the whole country or economy such as inflation, global commodity prices, GDP, unemployment, industrial and economic activity, monetary and fiscal policy, budget etc. Now in this section we will discuss about important macroeconomic theories and parameters one by one.Continue Reading... No Comments.