Answer the qus num 1

Economic growth is the increase in the national income growth rate or the total production
volume of goods and services. Which is a long-term increase in the country's power to
provide more and more economical commodities to the people.

The economy of Bangladesh has been affected by a double-digit inflation. A shortage

of boring or energy crisis world-wide, increase in energy prices and cost-of
production together with a inflation from expansionary economic policies have caused
persistent inflation. Altogether, these have created a supply-side problem by decreasing the
productivity. The situation of Bangladesh has been aggravated due to political problems and
efforts for minimizing corruption and a lack of confidence in business and
manufacturing. it's hard to assume that we will ever revisit to the only digit
inflation. it's almost clear that we've to measure with this double-digit inflation. We
must determine the avenue the way to increase output and income, aggregate production and
provide the products and services in an attempt to fight the inflation. The natural rate of
inflation from four to 5 per cent is accepted in almost any developing country. Nevertheless,
a double-digit inflation of quite one-tenth must have some reasons.

Government bodies should take down steps in enhancing the employment opportunities for
the educated graduates.
 People should be given with the best education programs and facilities so that
their career can be built in the best way.
 Apart from the employment opportunities the government bodies can take steps in
promoting the medium scale and the small scale industries of the nation
 doing business easier
 improve financial sector governance
 And ensure a reliable supply of electricity.
 complete its mega-projects on a fast track

Both the rise and therefore the decrease of rate of inflation (General Price level) are sort of

a two side sharpened razor in an economy like Bangladesh. They both are harmful for an
economy. Therefore, it's been attempted here to understand about some experimented
determinants of inflation. Moreover, during this respect a well-known econometric technique,
namely, Autoregressive Distributed Lagged (ARDL) Model has been applied. By employing
data series for 1972 to 2012, it's been indicated that the gross domestic product, funds,
and rate of interest of current year of Bangladesh also as previous year’s real rate of
exchange and rate of interest have contributed to extend inflation in Bangladesh. it's also been
noticed that current year’s real rate of exchange in Dollar and former year’s funds have
contributed to decrease the rate of inflation . In our study, we emphasized on the
importance of variables and availability of knowledge due to which some important
determinants like percentage, remittance and oil price are ignored in main model.
The latest Bangladesh Development Update: Powering the Economy Efficiently, says that
growth will remain resilient, underpinned by strong domestic demand and structural
transformation, but there is no room for complacency. To achieve its growth aspirations,
Bangladesh needs to create more and better jobs by boosting private investment, diversifying
exports and building human capital. The country also needs to make doing business easier,
complete its mega-projects on a fast track, improve financial sector governance and ensure a
reliable supply of electricity. Further, sustaining its export and remittance growth will be
important. It also needs to focus on improving infrastructure, urban management, and
environment conservation. To improve the economic growth in Bangladesh it is necessary to
encourage its major industries and mainly agriculture. Because it’s economic condition
depends on this two sectors

Answer the qus number 2

Value Added Approach the money value of final goods and services produced at current
prices during a year is taken into account. This is one of the ways to avoid double counting.
The difference between the value of material outputs and input at each stage of production is
called the value added. Each firm adds a certain value to the product. We call this VALUE
ADDED- the difference at each stage of production between the value of a product and cost
of intermediate goods bought from other firms. Value added at each stage represents income
to resource suppliers at that stage

 the market price of ultimate goods and services produced during a country during

a given period of time , for instance during a given year and that we gave the instance of
manufacturing jeans where maybe the farmer helps produce the cotton then the spinner takes
that cotton and makes thread then the material maker takes the thread and makes
fabric then the jean maker takes the material and produces jeans then the market price of
these jeans was $50 then , assuming all of this happened in one year, within the period of
time that we're measuring GDP for, then we might just count the $50, if we're watching the
ultimate market price or the market price of ultimate goods and services. you'd say the GDP
for a minimum of for this component of the GDP from these jeans is $50 but I do want to
clarify that there are multiple ways in which you'll measure GDP and you'll even believe it
from a worth added approach but the key idea is not any matter how you measure it you
ought to get to an equivalent value, so let's believe the varied actors here and what their value
add was. So, first, let's believe the Farmer So, this is often the farmer, my not so elegantly
drawn rectangle around what he's doing. So, the farmer's value add, Well, before we only had
some dirt and things then , maybe you'll say that the market price was zero then he's ready
to produce something or she's ready to produce something that now features a market price of
$10, so their value add is $10. Now, from there, the cotton goes to the spinner. The threaded
maker they take that $10 cotton, so this is often spinner , they take the $10 cotton and
are ready to produce $20 worth of thread, they took something worth $10 and that
they were ready to do something thereto to form it worth $20, so their value add is now
another $10 then , this is often the spinner , then from there it goes to the material maker and
that i think you see where this is often going, the material maker is that this a part of our
process, fabric maker and their value add is Pause this video and believe it. Well, they take
something worth $20 and they are to show it into something that features a market price of
$30, so their value add is additionally $10 then last but not least, you've got the jean
company,. Now, one advantage of the worth added approach is that real supply chains are
quite complex and things could be going from one country to a different , they could as we've
talked about in another video, the year might end right up here then , when something is
formed in China and there is value add in China on the other hand it's shipped to the US and a
few value add is placed thereon then it's shipped back to China or Mexico, you've got to take
care to only count the worth add within the country that you're measuring the GDP. So, that's
one useful way or one useful reason, or a method during which the worth added
approach could be useful. The key idea though is that you're going to an equivalent value
to get an equivalent value because the market price of the ultimate goods and services
produced during a given period of time.

Answer the qus num 3

We explained earlier that nominal measures are distorted by the effects of inflation. Thus,
nominal GDP inflates the actual quantity of goods and services produced (i.e. real GDP)
making it look bigger than it really is. Let’s think of this another way. Real GDP is highly
correlated with employment and the standard of living. When real GDP increases, we tend to
have more jobs and more goods and services to consume. When businesses need to produce
more goods and services, they typically need to hire more workers, which means incomes are
up. By contrast, when inflation drives nominal GDP up, there may be no effect on jobs and
the standard of living. If businesses are producing the same quantity of goods and services,
they don’t need to hire more workers. The same quantity of things just cost more.

It is important to differentiate between real and nominal measures of value and output. Once

we add up money value of output, spending, or incomes we find yourself with what are
called par value. Suppose that we found that measure of nominal GDP had risen by 50%
between 2010 and 2020. If we would like to match real GDP in 2020 thereupon 2010, we
might got to determine what proportion of the five hundred nominal increase was thanks
to increases generally level of price and the way much thanks to increases in quantities of
products and services produced. There are many possible ways of doing this, the
essential principle is usually an equivalent .it's to compute the worth of output, spending and
income in each period by employing a common set of base-period price. When this is
often done, we speak of real output, spending or income as being measured in constant prices.

Answer the qus num 4

Gross domestic product (GDP) represents the entire output of excellent and services.

However, as GDP rises and falls, the metric doesn't consider the impact of inflation
or inflation on the GDP results. The GDP deflator shows the extent of price changes on GDP
by first establishing a base year, and secondly, comparing current prices to prices within
the base year. Simply put, the GDP price deflator shows what proportion a change in GDP
relies on changes within the price index.
The GDP price deflator expresses the extent of price index changes, or inflation, within the
economy. The metric includes the costs paid by businesses, the government, and consumers.
Typically GDP, expressed as nominal GDP, shows the entire output of the country in whole
dollar terms. Before we explore the GDP deflator, we must first review how prices can
impact the GDP figures from one year to a different.

Yes I think so it estimate the inflation rate. The GDP price deflator measures the changes in
prices for all goods and services produced in an economy. The GDP deflator is a more
comprehensive inflation measure than the CPI index because it isn't based on a fixed basket
of goods. After 2009 inflation rate is also calculated on the basis of CPI. On the other hand
GDP deflator is a broader concept. CPI is computed using a fixed basket of goods, whereas
GDP deflator allows the basket of goods to change over time as composition of GDP
changes.

GNP and GDP both reflect the national output and income of an economy. The main
difference is that GNP (Gross National Product) takes into account net income receipts from
abroad. GDP (Gross Domestic Product) is a measure of (national income = national output =
national expenditure) produced in a particular country.
Answer the qus num 5

2021 : Nominal GDP = quantity of output × price 

= 34000 × 50
= 170000

 Real GDP = quantity of output × base year price 

= 3400 ×45 
=153000

# For 2022 
Nominal GDO = 2300 × 60
                            =138000
Real GDP        =2300 × 45
                          =103500
For 2023 
Nominal GDP =2000 ×45
                           =90000
Real GDP        = 2000 ×45
                           =90000

For 2024 
Nominal GDP = 4000 ×55
                           =220000

Real GDP      =4000 ×45

                         =180000

GDP deflator:-

Nominal GDP÷ Real GDP×100

For , 
2021 =170000÷153000 ×100
           =1.111
2022 =138000÷103500 ×100
            =133
2023 =90000÷90000 ×100
           =100
2024=220000÷180000 ×100
           =1.22

Inflation rate :-
GDP deflator current - GDP deflator base year ÷GDP deflator of base year ×100
2021 = 111-100÷100 ×100
           =11%
2022 =133-100÷100 ×100
            =33%
2024 =122-100÷100 ×100
             =22%

Answer the qus num 6

DI               Savings      Consumption 
330000     220000      =110000
540000     390000       = 150000
MPC= ^C÷ ^Dl  
=40000÷210000
 =0.19
MPS=^S ÷^Dl 
= 170000÷210000
  =0.18

Ans the qus number 7

In economics, Gross Domestic Product (GDP): is employed to calculate the entire value

of the products and services produced within a country’s borders, while Gross National
Product (GNP) is employed to calculate the entire value of the products and services
produced by the residents of a rustic, regardless of their location.
Essentially, GDP looks for the quantity of economic activity within a nation’s economy,
while GNP looks at the worth of the economic activity generated by the nation’s people. this
suggests that GNP will count the economic activities of expatriates and other citizens outside
the country’s borders but GDP won't , which GDP will consider the activities of non-citizens
within those borders, but GNP won't .
GDP is probably the foremost widely used metric to live the health of economies. But some
economists have argued that GDP may be a flawed metric because it doesn't measure the
economic wellbeing of society. For instance, it's possible that GDP goes up but median
income taking place and poverty rate increasing. GDP also doesn't measure environmental
impact of growth, nor sustainability. Other important metrics include health of the
population, infant death rate rates, and malnutrition rates, none of which are captured by
GDP.

For example U.S. and Ireland

In 2010, U.S. GDP was $14.59 trillion. In the same year, the GNP was $14.64 trillion. The
numbers for the U.S. aren't very divergent because U.S. income receipts and payments are
roughly in balance.
On the opposite hand, Ireland GDP in 2010 was $211.39 billion and GNP $149.54 billion

Answer the qus number 8

The expenditure function which provides the minimum cost of reaching a given indifference

curve at a specified set of costs the cash value of change in utility is then given by the change
in cost at some reference prices when the change in utility is caused by some price when the
changes measure which uses the new prices as reference and his equivalent variation as that
which uses the old prices as references.

The consumption function shows the connection between the extent of consumption

expenditures and therefore the level of disposable income. There's a relationship between
consumption and income. We will see the consumption function most vividly within the sort
of a graph. The Figure plots the
The consumption function expresses the functional dependence of consumption on variable
thought to influence the extent of consumption expenditure by individuals like income
wealth and therefore the rate of interest the consumption function was a crucial innovation
introduced the sensible interest within the consumption function relates to relation between
consumption and income

The consumption function states that aggregate real consumption expenditure of an

economy may be a function of real value . This is often called the Keynesian Consumption
Function. The classical economist’s wont to argue that consumption was a function of the
speed of interest such because the rate of interest increased the consumption expenditure
decreased and the other way around. Keynes stated that the speed of interest may have some
influence on consumption but the important income was the important determinant of
consumption. Rich people save more than poor people, both absolutely and as a percent of
income. The very poor are unable to save lots of in the least. Instead, as long as they
will borrow or draw down their wealth, they have a tendency to disserve.
It should be remembered that within the consumption function consumption expenditure
refers to intended or ex-ante consumption and not actual consumption. Similarly, income
refers to anticipated income and not actual income. Therefore, the consumption function
shows what consumption expenditure would be at different levels of income. The
mixture consumption within the economy are often acknowledged from the consumption
expenditure of various individuals purchasing commodities. During this volume a
distinguished American economist presents a replacement theory of the consumption
function, tests it against extensive statistical J material and suggests a number of its
significant implications.

Central to the new theory is its sharp distinction between two concepts of income, measured
income, or that which is recorded for a specific period, and permanent income, a longer-
period concept in terms of which consumers decide what proportion to spend and the
way much to save lots of . Friedman suggests that the entire amount spent on consumption is
on the typical an equivalent fraction of permanent income, no matter the dimensions of
permanent income. The magnitude of the fraction depends on variables like rate of interest,
degree of uncertainty concerning occupation, ratio of wealth to income, family size, and so
on. The Savings ration does rise with the extent of development but at a decreasing rate
levelling off in maturity at about per cent of value there's voluminous literature concerning
why this could be the case if may be a s if saving is a luxury good which then loses its appeal
James Duesenberg 1949 developed the relative income hypothesis which predicts that the
Savings income ratio remain unchanged through time if the private distribution of income
remain unchanged and and Modigliani 1963 developed the life cycle hypothesis of savings
which predicts a continuing savings ratio if the speed of growth of population and per capita
income are steady to discriminate between the hypothesis is virtually impossible as society
develop both growth and income inequality first
The savings rate is calculated by subtracting annual mean expenditures from annual mean
income after taxes. Consumption An example of consumption is when many members of the
population shopping .An example of consumption is eating a snack and a few cookies. An
example of consumption is when an individual consumes 2 bushels vegetables per day.
Misuse of land and resources. Exporting Pollution and Waste from Rich Countries to Poor
Countries. Obesity thanks to Excessive Consumption. A cycle of waste, disparities and
poverty.

Everyone devotes an enormous chunk of their budget to housing, for instance.

Poor, bourgeoisie and rich families spend similar shares of their budgets on clothing and
shoes, and on food outside the house.
But poor families spend a way larger share of their budget on basic
necessities like food reception, utilities and health care. Rich families are ready to devote a
way bigger chunk of their spending to education, and a way, much bigger share to saving for
retirement.