Macro-Economy?

Question

What is the relation between inflation increase and rupee appreciation and GDP growth rate..?? How does change in one affect the other...Why does Govt need hike CRR when inflation rises or when rupee appreciates ?

Answer 1

Macroeconomics as "The study of whole economic systems aggregating over the functioning of individual economic units. It is primarily concerned with variables which follow systematic and predictable paths of behaviour and can be analysed independently of the decisions of the many agents who determine their level.

When we study macroeconomics we are looking at topics such as economic growth; inflation; changes in employment and unemployment, our trade performance with other countries (i.e. the balance of payments).

GOOD LUCK FRIEND!!!!

Answer 2

the uncontrollable unbalanced growth is inflation

because of this rupees value increases and so every thing in the country increases eventually

they need a hike CRR to reduce the circulation of the money in the country