Explanation

The formula for the GDP Deflator is Nominal GDP / Real GDP x 100.

Explanation

The Phillips curve illustrates the relationship between inflation and unemployment.

Explanation

Islamabad isn't as cheap as Lahore.

Explanation

Humble means عاجز

Modest means عاجز

Explanation

The aggregate demand curve slopes downward primarily due to the wealth effect, interest rate effect, and exchange rate effect.

Explanation

• The theory of comparative advantage was presented by David Ricardo.
• He introduced this concept in his book "Principles of Political Economy and Taxation," published in 1817.

Explanation

• In production theory, the short run is a period during which at least one resource is fixed.
• This means that there are constraints on adjusting all inputs to production.
• For example, in the short run, a firm may not be able to change its capital equipment or the size of its factory.
• However, it can adjust variable inputs such as labor.

Explanation

• The term "lender of last resort" refers to a central bank providing loans to commercial banks during times of financial crisis.
• This action helps stabilize the financial system by providing liquidity to banks facing liquidity shortages, thereby preventing widespread bank failures and systemic collapse.

Explanation

• The difference between Gross Value Added (GVA) and Net Value Added (NVA) is depreciation.
• Gross Value Added (GVA) represents the total value generated by a firm, industry, or sector, minus the value of intermediate goods used in production. It is essentially the value of output minus the value of intermediate goods.
• Net Value Added (NVA) is Gross Value Added minus depreciation. Depreciation accounts for the wear and tear of capital goods used in production, which reduces their value over time. So, NVA provides a measure of the net contribution to the economy after accounting for depreciation.

Explanation

Frictional unemployment often occurs when people first enter the labor force.