Macroeconomics
Macroeconomics deals the national economy as well as global economy.
EX- Inflation rate, Unemployment rate, GNP, GDP, etc. are studied in Macroeconomics.
Macroeconomics Goals/Objectives
o Pricing stability that means low inflation rate
o Rapid economic growth
o High employment opportunities
Macroeconomics Policy
? Fiscal Policy – Adopt by Ministry of Finance
? Monetary Policy- Adopt by Central Bank/Bangladesh Bank
GDP (Gross Domestic Product)
GDP is the total market value of all final goods and services produced within a country or a geographical area in a given time period.
GDP includes the income of foreigners working in Bangladesh and the profits that foreign companies earn in Bangladesh.
GNP (Gross national Product)
GNP is the market value of all final goods and services produced during a given period by factors of production owned by a country’s citizen.
GNP includes the income of Bangladeshi citizens working abroad and profits earned by Bangladeshi companies in foreign countries.
Measuring GDP
There are two approaches for measuring GDP-
A. Expenditure approach
B. Income approach
A. Expenditure approach
Expenditure approach is sum of four factors or components-
1. Personal consumption expenditure(C)
2. Gross domestic private investment(I)
3. Government expenditure and investment(G)
4. Net exports(Export earnings-Import payments)which is denoted by X-M
In equation form, we may write
GDP = C + I + G + X - M
1.&nbs ...