Class 11 Economics Inflation: Problem and Policies

11th English Medium
Chapter 17 :Inflation: Problem and Policies Meaning:  Inflation refers to a situation of increase in the general price level over a period of time. It is a part of business cycles. Indicators of Inflation There are three standard indicators of inflation: Wholesale Price Index (WPI) Consumer Price Index (CPI) Gross Domestic Product (GDP) Causes of Inflation Increase in Money Supply Deficit Financing Rise in Population Fall in Production Increase in Wages Administrated Prices Inflation Across the Border’s Indirect Tax Credit Expansion Black Money   Effect of Inflation or Problems related to inflation Inflation Hinders the process of growth Adverse effect on the people with fixed Income Increase in the cost of Projects Adverse Impact on Balance of Payments Wage-Price spiral Inequality Economic Stagnation Impact on FDI Speculation and Hoarding  …
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Index numbers ,11th class Economics Notes

11th English Medium
Meaning: Index numbers is a statistical tool for measuring relative change in a group of related variables over two or more different times. Index number expresses the relative change in price, quantity, or value compared to a base period. An index number is used to measure changes in prices paid for raw materials; numbers of employees and customers, annual income and profits, etc. 2. USES OF INDEX NUMBERS Index numbers are economic barometers. Index numbers measure the level of business and economic activities and are therefore helpful in gauging the economic status of the country. Index number is a special type of averages which helps to measure the economic fluctuations on price level, money market, economic cycle like inflation, deflation etc. Index numbers helps in formulating suitable economic policies and…
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11th Class Economics : CORRELATION

11th English Medium
  Correlation Correlation refers to the associations between variables. When an association exists between two variables, it means that the average value of one variable changes as there is a change in the value of the other variable   Kinds of correlation:- Positive and Negative correlation. Linear and non – linear correlation. Simple and multiple correlations.   Positive correlation: If two variables change in the same direction (i.e. if one increases the other also increases, or if one decreases, the other also decreases), then this is called a positive correlation. For example: Advertising and sales. Some other examples of series of positive correlation are: (i) Heights and weights; (ii) Household income and expenditure; (iii) Price and supply of commodities; (iv) Amount of rainfall and yield of crops.   Negative correlation:…
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