Question

Answer the question

The selected country is India

1. Gross Domestic Product
   1. C+I+G+NX defined.
   2. The country’s actual GDP and percentage each component represents of the total.
   3. The major import categories and from what countries
   4. The country’s major export categories and to where.
2. The Business Cycle
   1. Phase the country is now experiencing supported with actual GDP data.
   2. The country’s current unemployment rate and inflation rate.
   3. The country’s target unemployment and inflation rate.

Answer 1

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes. It can be adjusted for inflation and population to provide deeper insights.

a) The expenditure approach, also known as spending approach, calculates the spending by the different groups that participate in the economy. This approach can be calculated using the following formula: GDP = C + G + I + NX, or (consumption + government spending + investment + net exports). All these activities contribute to the GDP of a country.

Where C is private consumption expenditures or consumer spending. Consumers spend money to buy consumption goods and services, such as groceries and haircuts. G represents government consumption expenditure and gross investment. Governments spend money on equipment, infrastructure, and payroll. I is for private domestic investment or capital expenditures. Businesses spend money to invest in their business activities (buying machinery, for instance). NX is net exports, calculated as total exports minus total imports (NX = Exports - Imports). Goods and services that an economy makes that are exported to other countries, less the imports that are brought in, are net exports.

b)  India continues to remain the fastest growing major economy in the world in 2018- 19, despite a slight moderation in its GDP growth from 7.2 per cent in 2017-18 to 6.8 per cent in 2018-19.

Production of Food grains (Million tonnes)  283.4, and Index of Industrial Production (growth) (per cent) 3.6, Electricity Generation (growth) (per cent) 3.5.

c) Its top imports are Crude Petroleum, Gold, Diamonds, Coal Briquettes and Petroleum Gas.The top import origins are China, the United States, the United Arab Emirates, Iraq and Saudi Arabia.

d) The top exports of India are Refined Petroleum products, Diamonds, Packaged Medicaments, Jewellery and Iron and steel. The top export destinations of India are the United States, the United Arab Emirates , China , Hong Kong and Singapore.

e) India's Current Unemployment Rate - 7.7%

Inflation Rate - 5.9%

f) Targeted inflation Rate - 4%

Targeted Unemployment Rate - 2.5%