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This four-page chart covers:
Definition of economics
Production threat curve
Economic association of society
Supply, call for, and marketplace equilibrium
Economic progress, enterprise cycles, unemployment, and inflation
National source of revenue accounting and GDP
Aggregate call for and combination supply
The multiplier model
Fiscal policy
Government budgets
Money and banking
Monetary policy
Exchange charges and overseas macroeconomics
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Extra info for Macroeconomics (SparkCharts)
Sample text
This chapter tries to analyze and untangle these issues and puzzles. 1 shows the ratios of savings and investment to GDP since the beginning of the 1990s. There has been a rapid increase in the domestic 22 Macroeconomic Accounts: The Structure of Demand 23 saving rate over the past decade and a half. 2 Investment as proportion of GDP has also increased in step with savings until at least the early years of the present century whence a period of stagnation followed, one that seems to be ending. This rapid increase in the rates of saving and investment appears to indicate Bangladesh’s success in macroeconomic performance and, prima facie, the increase in the investment rate would appear to be the main factor behind the acceleration in the growth rate.
The GDP accounting identity tells us that domestic investment is the sum of domestic savings and the import surplus in trade in goods and services. To the extent that the import surplus – the gap between investment and domestic savings – is not matched by the three components of current account of balance of payments, there is the net balance in the capital account to fall back upon. 11 The table highlights certain features of the evolution of the sources of financing the import surplus, the gap between investment and domestic savings (neglecting “statistical discrepancy”): (a) Remittances (REM) made by Bangladeshis working abroad, a positive element, has grown extremely rapidly, from less than 3 percent of GDP in the early 1990s to more than 11 percent by the beginning of the second decade of the 21st century.
Some of these problems are more manageable than the others. These surveys have periodically experimented with multiple definitions of labor force. Fortunately, they have simultaneously collected information according to a so-called usual definition which appears uniform through different surveys. We have used this definition. 4, labor force covers all those 10 years and above while the last three surveys cover those 15 years and above. The survey for 1999/2000 compiles information according to both definitions which shows that, fortunately, the estimates of sectoral share are about the same for both.
