NATIONAL INCOMME, BUSINESS CYCLE

 NATIONAL  INCOMME, BUSINESS  CYCLE, HUMAN  DEVELOPMENT,  POVERTY 

INTRODUCTION: 

           National Income, Business Cycles, Human Development and Poverty are intensely Related subject areas. All of these work simultaneously and affect each other. The most important aspect is to identify the key aspects, decision on goals and integrated effort.There is an effect of policy, entrepreneurial culture, societal structure and addressing the utmost requirements with short term as well as the long term perspective. This unit give details of these elements of development in coherence with each other.

• National  Income
• Important  National  Income 
• Business  cycle
• Four phase of  business  cycle
• Human development
• Poverty

National  Income 

          National  Income  measure  the total  value  of  good  and  services  produced  within the  economy  Over  a  perieod  of  time  National  Income  is  the  final  output  of  the  economy activity .National Income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure. On this basis, national income has been defined in a number of ways. In common parlance, national income means the total value of goods and services produced annually in a country.

Important  national income 

1. National  policies
2. Per  Capital  income
3. Income  distributions
4. Economic  planning

Business  cycle 

       Business  cycle  refers  to  economy  wide  fluctuation in  economy  activity over  no of months  or  years. A business cycle occurs due to the fluctuations that an economy experiences over time resulting Frome changes in economic growth. Understanding business cycles is the essence of a course in macroeconomics. Economists try to discern where the economy is located and more importantly where it is heading in order to deal with possibly adverse future economic events. When the economy is at or is heading in an undesirable direction, economists May apply fiscal or monetary policy tools to change the course of the economy.

Four phase of  business  cycle 

Contraction - When the economy  start  slowing  down  it’s  usually  accompanied  by  a   bear  market.

Through – When the  economy Hits  bottom, usually  in  a  recession.

Expansion – when  the  economy  start  growing  again  it’s  usually  signalleyd  by a  bull  market.

Peak –when  the  economy  is  overheated  and  is  in a  state  of  irrational  exuberance  “This  is  when  Inflation  rears  its  ugly  head.     

Human development 

Human  development  as “the  process  of  enlarging  people  choice,” said  choices  being  allowing  them  to  “lead  a long  and  healthy  Life , to  be educated, to  enjoy  a  decent  standard  of  living’’, as  well as “political  freedom, other  guaranteed  human  rights    and   various  ingredients  of  self-respect.

poverty 

Is  the  insufficient  supply  of  those  things  which  are  requisite  for  an  individual  to  maintain  himself  and  those  dependent  upon  him  in  health  are  vigour. 

Absolute  poverty 

Individual  is  not  able  to  meet  the  basic  need  food, safe drinking  water,  health,  shelter,  education and information. 

Relative  poverty 

An  individual  may  be relatively  poor  among  the  person  of  his  own group  who  are  richer  than him.