with goods rise and the entire economy seems to go haywire. Inflation has never done good to the economy. Inflation and economic growth are parallel lines and can never meet. Inflation reduces the value of money and makes it difficult for the common people. Causes of Inflation 1. Demand Pull Inflation If the economy is at or close to full employment then an increase in AD leads to an increase in the price level. As firms reach full capacity‚ they respond by putting up prices leading to inflation
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National Income Determination Introduction • A key objective of Macroeconomics is to explain GDP growth and its fluctuations • Therefore‚ need to understand the forces that determine GDP (“National Income”) • John Maynard Keynes in his “General Theory of Employment‚ Interest and Money” (1936) developed a model of income determination • Known as Keynesian Theory of Income Determination • Aggregate spending / demand determines the level of aggregate output Concepts and Functions Actual
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Is Profit Maximisation always the major objective of a firm? The production of goods and services in our economy today takes place within organisations‚ whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements‚ goals and objectives is simultaneous through all businesses. Changes in these objectives can have forcible effects on the decisions
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It’s a well-accepted‚ and known fact that the term of the originator of the text ‘author’ and the term ‘authority’ both has a common root; this of course‚ should alert us immediately to the fact that this does not simply means a description of the person who is known to be restricted to producing a literary work‚ or writings‚ in older usage‚ the term ‘author’ had a broader meaning of ‘maker’‚ this usage means that we are all considered ‘makers’ and ‘authors of our own lives‚ the author then‚ is
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Is it important to question the ideas and decisions of people in positions of authority? I believe it is. While rules are meant to be followed‚ there should always be a reason behind that rule. There are instances where the rule is deemed by society as "unfair" or "bias." There are other instances where the rules can be detrimental to the people following them. Let’s take a trip back to the 60’s. Remember Rosa Parks? She was arrested for refusing to give up her seat. Remember Ruby Bridges? She
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WHAT ARE COSTS AND PROFITS? HUNGRY HELEN’S COOKIE FACTORY • Helen‚ the owner of the cookie factory‚ buys flour‚ sugar‚ flavorings‚ and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers. 2 TOTAL REVENUE‚ TOTAL COST‚ AND PROFIT • The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour‚ sugar‚ workers
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Profit Determination Prepared by John Hoggett and Clare Innes Measurement of Profit • Cash basis • Cash income received - Cash expenses paid – Revenues recorded when received – Expenses recorded when paid • Accrual basis • Profit = Income (incl. Revenues) - Expenses – Revenue is recognised when the anticipated inflow of economic benefit can be reliably measured – Expenses when the consumption of benefits can be reliably measured 2 Adjusting Entries • The need for adjusting entries-
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Importance of National Income Statistics There are several important uses of national income statistics and‚ therefore‚ there is great need for their regular preparation. National income estimates provide not only a single figure showing the national income‚ but also supply the detailed figures in regard to the various components of the national income. It is both the figure of national income and the details regarding its various constituents that throw light on the functioning and performance
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the development of capitalism as it allows us to calculate profits (Fischer‚ 2000). According to Pacioli‚ the hallmark of a successful business is what he calls the profit motive. This is the notion that successful business men and women must acknowledge and be influenced by the spiritual aspects of their lives. Or more specifically‚ Pacioli maintained that business people must insist on justice‚ honour‚ and truth‚ elements derived from an almighty being. For Paciloi‚ these three elements ought to
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INCOME TAX Introduction : The income tax is administrated Income Tax Ordinance‚ 1984 and the Income tax Rules‚ 1984 as well as notification made under the Ordinance. The charge of tax of a person depends on its resident ship. Total world Income of a resident is charged to tax in Bangladesh. Where as a non-resident’s Bangladesh income is only charged to tax in Bangladesh. There are seven heads of income. The are salary‚ interest on security‚ house property‚ agriculture‚ business and profession
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