Unemployment:

Unemployment represents the number of people in the work force who want to work but do not have a job. A person is said to be unemployed when:

  • They aren’t working, even part-time or temporary.
  • They are available to work.
  • They actively looked for work in the past four weeks.

Inflation:

Inflation is the increase in the prices of goods and services over time. There are two causes of inflation. The most common is Demand-pull inflation. Demand-pull inflation happens when the supply of goods or services will be less compared to demand. Buyers are willing to pay higher prices. Next is Cost-push inflation is the second, less common, cause. In cost-push inflation there exist a restriction in supply, but not in demand.

The Trade Cycle:

The business cycle or economic cycle or trade cycle is the fluctuations of gross domestic product around its long-term growth trend. As a macroeconomic issue, we study the causes of business cycles and suggest remedial measures.

Stagflation:

Stagflation is a situation in which the inflation rate is too high, which slows down the economic growth and steadily increse the unemployemnt rate

Economic Growth:

Economic growth is the increase in Real GDP, Real GDP is nothing but inflation adjusted market value of the goods and services produced by a country over a period of time.

The Exchange Rate and the Balance of Pay­ments:

The balance of payments is a systematic record of all economic transactions between the mem­bers of the home country and the rest of the world in an accounting year. These transactions are large, if not entirely, influenced by the exchange rate. It is the rate at which a country’s economy is exchanged for another currency (or gold).


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