Question

Locate a recent article (published within the last year) that includes values for the key economic factors. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze your selected country's economic well-being. Include the following in your discussion.

• Discuss how nominal and real GDP for your selected country are affected if there is a decrease in taxes and an increase in interest rates.
• Identify and discuss at least six economic indicators for your selected country.
• State the relationship between GDP, net domestic product (NDP), national income (NI), personal income (PI), and disposable income (DI).

Answer 1

Various economic factor need to be taken into account when determining the current and expected future value of a nation's economy. For a nation, key economic factors, include labor costs, interest rates, GDP, unemployment rate, taxes, net domestic product etc.

If interest rate rise, the opportunity cost of making capital purchases increases, shifting the AD curve to the left and decreasing the real GDP.By contrast, higher interest rates discourage consumption and real GDP declines. The combined effect of both means interest rate and GDP are inversely related.

A decrease in taxes has the opposite effect on income, demand, and GDP. It will boost all three, which is why people cry out for a tax cut when the economy is sluggish. When the government decreases taxes, disposable income increases. That translates to higher demand (spending) and increased production (GDP).

Economic Indicators for India including actual values, historical data charts, an economic calendar, time-series statistics, business news, long term forecasts and short-term predictions for India economy. Economic indicators of india are as follows

1). Currency

2). Stock market

3). Government bond.

4). GDP growth rate

5). Unemployment rate.

6). Inflation rate.

GDP is defined as the total market value of all officially recognized products and services that are produced within a specific time period. NDP is the estimated value on the country's amount of spending in order to maintain its current GDP.National income means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money.

National income is a broader nationa level economic measure than is personnel income. Disposable personal income measures the after-tax income of persons and nonprofit corporations. It is calculated by subtracting personal tax and nontax payments from personal income.

(1) GDP, which is total gross income to all factors;

(2) National income, which is the sum of factor incomes and is obtained by subtracting depreciation and indirect taxes from GDP; and

(3) Disposable income, which measures the total incomes, includ­ing transfer payments, but less taxes, of the household sector.