Economic variable

This PPT is related to the variable in our economy. It is Economic measure that can vary over a range of values.

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