Basic Economic Concepts

Topics: R. K. Narayan, The English Teacher, Inflation Pages: 3 (837 words) Published: September 29, 2010
Basic Economic Concepts

Basic Indicators
The following basic economic indicators are important to understand: * Gross Domestic Product (GDP) - is the total amount of all goods and services produced in the country. This includes consumer spending, government spending and business inventories. Real GDP is a variant that takes out the impact of inflation, so that GDP can be compared over time. Real GDP is the basic measure of business activity and tracks the business cycle.  * Consumer Price Index (CPI) -is a measure of the price of a basket of goods and services; increases to this index indicate an increase in inflation.  * Producer Price Index (PPI) -is a measure of the price of commercial items, such as farm products and industrial commodities. PPI indicates the cost to produce items and is the leading indicator of inflation.  * Trade deficit - resultswhen a country's imports exceed its exports. The United Statesusually has a trade deficit.  * Trade surplus - resultswhen a country's exports exceed its imports.  * Balance of payments (BOP) - is the amount of foreign currency taken in minus the amount of domestic currency paid out; the United States usually has a balance of payments deficit.  * Unemployment rate - the Bureau of Labor Statistics releases employment numbers each month that note the number of employed and unemployed people in the United States, as well as the percentage of unemployed. Increases in the unemployment rate tend to occur when the economy declines and vice versa.

Swami and Friends|
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Swami and Friends is the first of a trilogy of novels written by RK Narayan, a celebrated English novelist from India. The novel, which is also Narayan's first, is set in pre-independence days in India, in a fictional town - Malgudi, which has almost become a real place in India today, due to the wide recognition and popularity of Narayan's many novels. His novels are known for their 'deftly etched characters, his uniquely...
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