International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 10 Issue: 08 | Aug 2023
p-ISSN: 2395-0072
www.irjet.net
“Analysis of GDP, Unemployment and Inflation rates using mathematical formulas and graphs.” Lavanya Sehgal Student, Science, Sat Paul Mittal School, Ludhiana, Punjab --------------------------------------------------------------***--------------------------------------------------------Abstract: This research paper summarises the process of persistent and appreciable rise in the general price level by the means of mathematical formulas and graphs .The data has been taken from 2008 to 2022. For this we have used different mathematical formulas and have analysed and structured it in the form of a research paper. KEY WORDS: Money, Inflation, Recession, Business, Economic growth, Economy. 1. INTRODUCTION In today’s busy economy, inflation is basically an increase in the average cost of goods and services. When the average cost rises, each and every unit of currency brings fewer goods and services therefore inflation corresponds to the value of money which can be expressed as a result of number of goods and services that can be bought by one unit of money. For example: if network prices increase more than the usual and exceeds the price of other goods and services , people who use the net frequently will certainly feel an inflation because their personal expense on net is higher than the average expense. 2. INFLATION: Inflation generally means a particular rate at which the marginal cost of goods and services rises in a period of time .It is important to note some important facts of the definition of inflation: 1. Inflation refers to a process of rising prices and not a state of high prices. 2. It refers to a situation of an appreciable or considerable rise in prices. 3. It should be prolonged in order to be called as inflationary price rise. 4. Inflation does not refer to one time rise in the price level but rather to persistent rise in the price level. 5. It has two categories: 1. Consumer Price Index (CPI). 2. Wholesale Price Index (WPI). Therefore to maintain this rise it is very important to comprehend different categories of inflation which are as follows; 2.1 DEMAND-PULL INFLATION: Inflation originating from the demand forces is called demand pull inflation. Although we have a lot of money but too many dollars leads few goods only for example; Rising house prices. Demand pull inflation is one of the most common types of inflation.The Cause of demand pull inflation is when the demand for goods and services exceeds the supply of other goods and services available at the existing prices. 2.2 COST PUSH INFLATION: In this type of inflation when overall prices increase due to increase in the cost of wages and raw materials.As we know higher the cost of production may lead to the reduction in the aggregate supply that is also the amount of total production in the economy.This type of inflation can also be called as wage-push inflation due its uniqueness in managing the cost of production of the economy. 2.3 INFLATION RATE: The inflation rate refers to the percentage change in the general price level of goods and services in an economy over a specific period of time, usually measured annually. It is a key economic indicator that quantifies the rate at which prices are
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