is Results. In this part includes interpretations and findings in relevance to the hypotheses test. In this part also describe hypotheses assessment summary in table form.
Fifth and last Chapter is Conclusion. In this part includes discussion based on this research finding in setting with the past research findings. In this part also describe some recommendations and implications of this research and also describe future research possibilities. Ending this part with conclusion.
1.6 DEFINITIONS:
GDP and Inflation are the key macroeconomic indicators of the economic performance of any country. The relationship and cause & affects are very important for any economic performance of the country.
GDP Economic Growth:
GDP indicates only currently produced goods and services. It is a flow measure of output per time period. For Example, per quarter or per year and indicates only goods and services produced during this interval. Such market transactions as exchange of previously produced houses, cars or factories do not enter into GDP. However, two types of goods used in the production process are counted in GDP. The first is Capital Goods and other type of goods is Intermediate Goods (Froyen, 2005).
Components of GDP:
GDP is broken down into the components. The first component is Consumption component of GDP. Consumption consists of the household sectors. Consumption can be further broken down into consumer durable goods (e.g., automobiles, television), nondurable consumption goods (e.g., foods, beverage, and clothing) and consumer services (e.g., medical services, haircuts) (Froyen, 2005).
The second component of GDP is Investment. Investment is part of GNP (Gross National Product) purchased by the business sector in addition residential construction. Investment divided into three sub components. First is business fixed investment, second is residential construction investment and final id inventory investment (Froyen, 2005).
The third component of GDP is government purchases. It is goods and services that are the parts of recent output that goes to the government sector such as federal government, state and local government (Froyen, 2005).
The final component of GDP is Net exports. Net Exports equal total (gross) export minus imports. Gross exports are currently produced services & goods and sold to foreign buyers, should be counted in GDP. Imports are purchases by domestic buyers of goods and services produced abroad and should not be counted in GDP. Imported goods and services are, however, included in the consumption, investment and government spending totals in GDP. Therefore, need to subtract the value of imports to arrive at the total of domestically produced goods and services (Froyen, 2005).
Inflation:
Inflation is when prices continue to keep rising, typically as a result of overheated economic growth or extra capital in the market search for too few opportunities. Wages usually creep upwards, so that companies can retain good workers (Amadeo, 2008).
How Protection Inflation:
If person are locking inflation protect alone, one best way to protect. Person purchase treasury bills and bonds; there pay fixed rates of interest. However, twice a year the governments readjust the princ
