Notes and Study material for Exams
Understanding Gross Value Added (GVA) at Factor Cost: A Comprehensive Guide Gross Value Added (GVA) at factor cost is a crucial economic indicator that measures the value of goods and services produced within a specific region or industry, taking into account the costs of production. It provides a comprehensive picture of economic activity and is … Read more
Balance of Payments is a systematic record of all economic transactions undertaken by residents of one country i.e. households, firms and the government with their counterparts in rest of the world. It consists of: 1. Current Account, 2. Capital Account and 3. Reserve Account. The Current Account covers transactions in goods and Services and transfers … Read more
The Dance of Demand and Supply: Understanding the Dynamics of Money Money, the lifeblood of any modern economy, plays a pivotal role in facilitating transactions, storing value, and enabling economic growth. Its availability and accessibility are crucial for individuals, businesses, and the overall health of the economy. However, the intricate interplay between the demand for … Read more
The Balance of Payments Surplus: A Sign of Strength or a Warning Signal? The balance of payments (BOP) is a record of all economic transactions between a country and the rest of the world over a specific period, typically a quarter or a year. It essentially tracks the flow of money into and out of … Read more
Understanding the Government Deficit: A Deep Dive into Key Measurers The concept of a government deficit is often discussed in economic and political discourse, but its true meaning and implications can be elusive. This article delves into the intricacies of government deficits, exploring the various measures used to quantify them and their significance in understanding … Read more
The Engine of Economic Growth: A Deep Dive into Capital Formation Capital formation, the process of creating and accumulating new capital assets, is the lifeblood of economic growth. It fuels innovation, expands productive capacity, and ultimately leads to higher living standards. This article delves into the intricacies of capital formation, exploring its key components, drivers, … Read more
Stagflation: A Modern Economic Enigma The term “stagflation” might sound like an oxymoron, a contradiction in terms. After all, how can an economy experience both stagnant growth and high inflation simultaneously? Yet, this seemingly paradoxical phenomenon has plagued economies throughout history, leaving policymakers and citizens alike grappling with its complexities. This article delves into the … Read more
The Current Account Deficit: A Tale of Two Sides The current account deficit (CAD) is a key economic indicator that reflects a nation’s financial health and its position in the global economy. It represents the difference between a country’s total earnings from exports and its total spending on imports. A deficit arises when a country … Read more
Here is a list of subtopics without any description for Real Exchange Rate: Real exchange rate Effective exchange rate Purchasing power parity BalassaÂSamuelson effect Real exchange rate targeting Real exchange rate misalignment Real exchange rate volatility Real exchange rate pass-through Real exchange rate appreciation Real exchange rate depreciation Real exchange rate overvaluation Real exchange rate … Read more
When a government spends more than it collects in taxes, it borrows from the private sector to finance the budget deficit. The accumulation of past borrowing is the government debt. A tax cut stimulates consumer spending and reduces national saving. The reduction in saving raises the interest rate, which crowds out Investment. As per Solow’s … Read more