Indian Economy Part 3

Indian Economy Part 3

1) Fiat money: Money with no intrinsic value.

2) Final goods: Those goods which do not undergo any further transformation in the production process.

3) Fiscal policy: The policy of the government regarding the level of government spending and transfers and the tax structure.

4) Four factors of production: Land,capital,labour and entrepreneurship. Together these help in the production of goods and services.

5) Great depression: The time period of 1930s (started with the stock market crash in new york in 1929) which saw the output in the developed countries fall and unemployment rise by huge amounts.

6) Gross domestic product: Aggregate value of goods and services produced within the domestic territory of a country. It includes the replacement investment of the depreciation of capital stock.

7) Gross fiscal deficit: The excess of total government expenditure over revenue receipts and capital receipts that do not create debt.

8)Gross primary deficit: The fiscal deficit - interest payments.

9) Gross national product: GDP + Net factor income from abroad. in other word aggregate income made by all citizens of the country.

10) High powered money: Money injected by the monetary authority in the economy. consists mainly of currency.