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Inflation – A Precise Note on It
Meaning of Inflation Inflation is an economic indicator that indicates the rate of rising prices of goods and services in the economy. Ultimately it shows the decrease in the buying power of the rupee. It is measured as a percentage. This percentage indicates the increase or decrease from the previous period. Inflation can be a…
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Government Budget and Its Different Aspects
Meaning of Government Budget A government has to perform different responsibilities. These responsibilities are related to public welfare and the general administration of government activities. The government needs financial sources to perform such tasks, duties and responsibilities. The financial sources of the government mean government income from different sources and its spending for different purposes.…
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Fiscal Policy : Meaning, Types, Instruments and Objectives
Meaning of Fiscal Policy The policy adopted by the government of a country for economic stabilization and sustainability is called fiscal policy. It is concerned with ensuring the economic growth and development of a nation through government receipt and expenditure. In other words, fiscal policy is the policy concerned with public receipt, public expenditure, public…
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Monetary Policy : Concept, Types, Instruments and Objectives
Concept of Monetary Policy There are two major types of macroeconomic policies. These are fiscal policy and monetary policy. Of the two, monetary policy is concerned with the management of money and money supply in an economy. Monetary policy is a sister strategy to a fiscal policy that formulates policies to facilitate economic policies guided…
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Price Index : Meaning, Types, Uses and Limitations
Meaning of Price Index There are different factors or phenomena in an economy that change with time. Such change in these factors or phenomena is measured with the help of index numbers. An index number is a statistical device developed to measure the relative change in the level of a phenomenon, variables, or a group…
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Remittance : Its Advantages and Disadvantages
Concept of Remittance Different economic activities are carried out to generate income. Such income is to be transferred from one place to another through different means. The act of transferring such generated income as cash from one place to another place within a country or from abroad is called remittance. In other words, it refers…
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Foreign Trade and Balance Of Payment (BOP)
Concept of Foreign Trade Foreign trade is the exchange of goods across national boundaries. It is an exchange of various specialized commodities and services rendered among the corresponding countries is known as foreign trade. Foreign trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a…
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Consumption and Saving : Taking Some Notes on Them
What is Consumption? Consumption is one of the important concepts in economics. It is extremely important because it helps determine the growth and success of the economy. Consumption is the part of income that is devoted to goods and services to derive mental or physical satisfaction. It refers to the final purchase of goods and…
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Investment : Meaning, Types, Determinants and Marginal Efficiency of Capital (MEC)
Meaning of Investment Investment is used primarily in two senses: financial sense and economic sense. In a financial sense, investment means purchasing and selling bonds, gold and stocks. But in an economic sense, these activities are just transfers of ownership as such investment does not increase the aggregate income and employment of the economy. Thus,…
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Per Capita Income : Just Its Concept
Per capita income refers to the average income earned by people of a country during a particular year. In other words, the average national income earned by an individual of a country in a particular year is called per capita income. It is a key indicator of the national economy and living standard of people…