WHY DO WE STUDY NATIONAL

INCOME, CPI AND UNEMPLOYMENT?

A PRESENTATION BY AYESHA
TARIQ

NATIONAL INCOME
The measurement of the size of the economy
and level of countrys economic performance;
To trace the trend or the speed of the
economic growth in relation to previous
year(s) also in other countries;
To make projections about the future
development trend of the economy.
To help government formulate suitable
development plans and policies to increase
growth rates.

 To fix various development targets

for different sectors of the economy
on the basis of the earlier
performance.
To help businesses to forecast future
demand for their products.
To make international comparison of
peoples living standards.

CPI
Consumer price index basically
measures changes in the price level
of a market basket, so it helps to
measure changes in purchasing
power of a currency and the rate of
inflation. It also helps to compare
prices of goods and services to what
their price was on the previous year

UNEMPLOYMENT
you need to study unemployment to
know how much of the population in
your country is unemployed through
seasonal unemployment, cyclical
employment and structural
unemployment etc
Its a health measure of economy