Economic Swat

Definition of Money :-  Money is anything which is generally accepted as a medium of exchange, measure of value, store of value and means for standard of differed payment. The term money is covers coins, currency, notes, cheque. Functions of Money :- There were two function of money. 1- Primary Function :- • Medium of Exchange • Measure of Value 2- Secondary Function :- • Standard of Differed Payment • Store of Value Money Supply :- It refers to the total volume of money held by the public at a particular point of time in an economy .

National Income :- National income refers to the money value of all the goods and services produced in a country during a financial year. GDP at Current Price (or) Nominal GDP :- (a)- It is the money value of goods and services produced in a year measured at the price of Domestic Territory. (b)- It can increase if price level rises. (c)- It is not good solution for society. GDP at Constant Price (or) Real GDP :- (a)- It is the money value of goods and services produced in a year measured at the price of Base Year. (b)- It can increase if level of production rises. (c)- It is good welfare for society.   Per -Capita GDP :-  (a)- GDP per capita is a measure of a country economic output that accounts for its number of people. (b)- It divides the country's GDP by its total population. That makes it a good measurement of a country's standard of living. (c)- It tells you how prosperous a country feels to each of it's citizens.   

Macroeconomics :-   Macroeconomics is the branch of economics that studies the behaviour and performance of an economy as a whole. In focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product(GDP) and inflation.    Macroeconomic policy :-   It refers to the instruments by which a government tries to regulate or modify the economic affairs of the country in keeping view with certain objectives. "It attempts to assess the behaviour of the economy as a whole and to seek ways in which its aggregate performance might be improved". ● Policy Targets and Instruments :- •  Targets :- (a)- To achieve full employment at the rate of 3% unemployment. (b)-  To achieve price stability at an annual inflation rate of 5% per annum. (c)- To attain the growth rate of 5% per annum for the economy. ● Objectives of Macroeconomics Policy :- (a)-  Full employment (b)-  Balance of payment (c)-  Price Stability (d)-...