This article presents the meaning and key features of inflation. The situation of the continuous, sustained, and rapid increase in prices of almost all goods and services is known as inflation. It means inflation is a continuous, sustained, and rapid increase in the general price level of the economy which is generally measured by the […]
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This article ‘Meaning and Views of Inflation’ tries to briefly explain the meaning of inflation and different views and perspective of inflation developed over time. Inflation is generally defined as the rapid, sustained, and large increase in the prices of almost all goods and services over time. Thus, inflation means a substantial and rapid increase
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Meaning of National Account Rebasing The Rebasing of National Accounts also called re-benchmarking of the national account series or gross domestic product (GDP) is the mechanism of replacing an old base year used to compile volume measures of GDP with a new and more recent base year or price structure. Economic analysis deals with the
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The measurement of national income accounts by using expenditure method and monetray management or currency management are closely related to each other. The spending method records all the spending made by economic sectors on domestically produced final goods and services during a particular time. The article tries to explain the measurement of GDP by expenditure
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Monetary policy is an important tool for any country’s economic development and overall economic stability. The objectives of monetary policy may vary from country to country depending on the economic and social condition of the country and other needs. Even in the same country, monetary policy has different objectives at different times. The main objectives
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Introduction If the gross domestic product is measured at the prevailing market price then it is known as nominal gross domestic product and if the gross domestic product is measured at a constant price or base year price then it is known as real gross domestic product. In this article, we attempt to give a
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The key terminologies/(basic terminologies of National Income) related to national income are briefly explained below. Domestic Territory of a Country United Nations states that economic or domestic territory is the geographical territory, governed by a government within which, individuals, goods, and capital distribute freely. It includes the following geographic or electoral boundaries: Normal Residents of
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In this article, we explain the major properties of the Cobb-Douglas production function Introduction to Cobb Douglas Production Function The Cobb-Douglas production function is an empirical production function developed by Charles W. Cobb (American Mathematician) and Paul H. Douglas (American Economist) based on empirical studies of various manufacturing industries of the USA. This production function
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Introduction The term equilibrium in the ordinary sense is a state of balance. It indicates the case in which the forces working in the opposite directions are in the position of balance. Equilibrium condition refers to the state from where there is no tendency to change until there is a change in the forces influencing
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This article explains the relationship between macroeconomics and the business environment Macroeconomics and Business Environment Macroeconomics is the study of relationships and behavior of aggregate economic variables such as national income, the total level of employment, total consumption, investment and saving, aggregate demand, aggregate supply, general price level, trade cycle, etc. The values and changes in
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