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GDP Growth, Employment and Poverty:
The advocates of economic reforms point out that the reform process has the potential of accelerating economic growth. After the teething troubles of the just two years - 1991-92 and 1992-1993, growth rate picked up and GDP growth averaged about 7 per cent during 1993-94 to 1997-98 (Refer table 8.1). However, thereafter, the growth process became uneven and even decelerated during 1998- 99 to 2002-03 to an average of 5.3 per cent per annum. If we compare the annual average growth rate during the pre-reform period (1980-81 to 1990-91) which was of the order of 5.6 per cent per annum, then the post-reform 12-year period (1990-91 to 2002-03) also shows an average growth rate of 5.5 per cent (Refer table 8.1). Obviously, the claim of the advocates of reforms that they have been able to substantially jack up growth to 6-7 per cent per annum is not borne out by facts. This implies that the reform process has yet to establish its distinct superiority over the pre-reform period.
The Hypothesis of Rational Expectations : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in addition, explici
Q. What do you meant by Payroll Tax? Payroll Tax:A tax which is levied on current employment or payrolls (collected either as a fixed amount per employee or as a percentage of
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What is contraction of supply?
suppose either computers or televisions can be assembled with the following labor inputs: units produced: 1 2 3 4 5 6 7 8 9 10 total labor used: 3 7 12 18 25 33 42 54 70 90 Draw th
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Suppose the demand curve for a consumer for coffee is: Q = 6 – 2P, where Q represents the number of cups per day and P is the price of coffee per cup. Question: Suppose the
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