Scribd
Upload
52 views

Title of Assignment

The document is a student assignment that explains the effect of macroeconomic variables like GDP, inflation, CPI, and others on the economy's performance of developed, developing, and underdeveloped countries. It provides definitions and formulas for key macroeconomic variables like GDP, GDP deflator, national income, and CPI. The student will compare the impact of one macroeconomic variable on the economies of one developed, one developing, and one underdeveloped country.

Uploaded by

Himanshu Shangari
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views

Title of Assignment

The document is a student assignment that explains the effect of macroeconomic variables like GDP, inflation, CPI, and others on the economy's performance of developed, developing, and underdeveloped countries. It provides definitions and formulas for key macroeconomic variables like GDP, GDP deflator, national income, and CPI. The student will compare the impact of one macroeconomic variable on the economies of one developed, one developing, and one underdeveloped country.

Uploaded by

Himanshu Shangari
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Title of Assignment: Take any one macroeconomic variable and explain its effect on the

GDP or of any three different countries (preferably, 1 developed, 1 developing and 1 under-

developed country) and compare the same with respect to the economy’s performance.

Submitted by : HIMANSHU SHANGARI

Registration Number : 2224113

Submitted To : Mrs . SAVITHA N

(MA, MPHIL)

(ASSISTANT PROFESSOR)

Class : 2BBA(H)-A

Subject Name : Macroeconomics

Subject Code : BBA233

Date of Submission : 1 st February 2023

Department Name : School of Business and Management

Page 1 of 6
CONTENTS

1) INTRODUCTION

2) VARIOUS MACROECONOMIC VARIABLES

3) TYPES OF COUNTRIES

4)

Page 2 of 6
INTRODUCTION

Macroeconomics is the branch of economics that studies an economy's overall behaviour and

performance. It is concerned with the aggregate changes in the economy, such as

unemployment, growth rate, GDP, and inflation. Furthermore, macroeconomists create

models that explain the relationships between these variables.

GDP : Gross domestic product (GDP) is a standard measure of the value added created by a

country's production of goods and services over a given time period.

INFLATION : Inflation is the rate at which prices rise over a given time period.

CPI : Consumer price index (CPI) is a weighted average of the prices of a representative

market basket of goods and services that represents consumption patterns over a specified

time period.

NOMINAL GDP : Nominal GDP is the market value of the final production of goods and

services within a country in a given period using current year's prices.

REAL GDP : Real GDP is an inflation-adjusted calculation that examines the rate of

production of all commodities and services in a country over a given year.

GDP DEFLATOR : The GDP deflator, also known as the implicit price deflator, is used to

calculate inflation. It is used to calculate the prices of new domestically produced final goods

and services in a country over the course of a year.

Page 3 of 6
VARIOUS MACROECONOMIC VARIABLES

1. GDP:

GDP = C + I + G + (X-M)

C= Consumption Expenditure by Households

I= Investment Expenditure

G= Government Expenditure on goods and services

X= Exports

M= Imports

2. NATIONAL INCOME :

NATIONAL INCOME = Total Rent + Total Wages + Total Interest + Total

Profit + NFIA

3. GDP DEFLATOR :

GDP DEFLATOR = Nominal GDP/Real GDP x 100

4. CONSUMER PRICE INDEX :

Consumer price index (CPI) = [Cost of the basket in the current year/Cost of the

basket in the base year] x 100

Page 4 of 6
TYPES OF COUNTRIES

According the WORLD BANK the countries are classified under 3 categories :

1. Developed

2. Developing

3. Under developed

1. Developed country, also known as an industrialised country, has a mature and

advanced economic system, as measured by GDP and/or average income per

resident. Advanced technological infrastructure and a diverse industrial and

service sector characterise developed countries.

2. Developing country, also known as a less developed country or emerging

market, has a lower GDP than developed countries and a less grown and

advanced economy.

3. Under developed country , a country that is financially less developed than

the others, with little industry and little money spent on education, health care.

Page 5 of 6
Page 6 of 6

You might also like