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Home of Economics teachings economics online expetise in economics father s name Rahimdad Khan Bhatti

15/06/2024

Till today accounting profit/loss is not actual clear whereas Economic profit/loss is still unrealized.

Review the impact of taxes in raisng Government Revenue but it largely depends upon taxe bases/production units/industr...
16/02/2023

Review the impact of taxes in raisng Government Revenue but it largely depends upon taxe bases/production units/industries , factories etc shown by green line,only raising taxe rate/taxes will not generate government revenue but only and only raisng tax bases/production units/industries, factories though@ appropriate tax rate/taxes would cause drastic increase in Government Revenue at its peak@t*. Economic policy makers should re-vist the such concept and it's implications.

Repeatedly mentioned by Almighty Allah in the Al-Quran for human beings that why don't u observe in the created universe...
14/02/2023

Repeatedly mentioned by Almighty Allah in the Al-Quran for human beings that why don't u observe in the created universe ? Now let's have look at movement of Total Revenue/wealth it starts from zero, grows at its peak then tends to fall to again zero.human resource who is considered as wealth in Economics, gets birth in this world empty handed/zero and finally passes away as empty handed/ zero . Alas! often we are befooled by in between temporary stages and consider it as permanent ones and deluded by strength, greed , lust , fear insensitivity etc, despite knowing our life journey s all possessions and relations start from zero and finally ends in zero.dynamics of TR curve

06/02/2023

Models conceived by my research work, no longer discovered or propounded by any economist since very birth of economics by Adam Simth publication of book generally known as “an enquiry into nature & causes of wealth of nations(1776).
PARADISE VERSUS NON PARADISE MODEL OF ECONOMY:
As forces of under and over are rampant in any economy i.e. (Under and over-consumption, under and over -production, under and over- saving etc) such economic behaviors on individual and aggregate level distorts the equilibrium in any economy and relegates it to merely ideal norm which virtually does not exist..Inflation is also distorted, nominal macroeconomic variables such as, deflation, nominal wages, nominal interest rate etc which are inevitable in any economy owing to said economic behaviors. If equilibrium phenomenon were assumed as ever –persistent, implying aggregate supply equals aggregate demand of goods and services (AS=AD) always even in economy, it would generate paradise model of economy , neither the phenomenon of shortage/excess demand ,surplus/excess supply may ever emerge nor phases of Business cycle theory such as recovery, expansion/prosperity, peak, contraction/recession, depression, trough may ever recur. Therefore, business cycle theory as well nominal variables (inflation, deflation, nominal wages and interest etc) are existent owing to deviation in the quantum of aggregate supply and aggregate demand in the economy which flourishes non paradise model in economy.
PARADISE MODEL OF ECONOMY
_..................................................................(AD=AS)

NON- PARADISE MODEL OF ECONOMY


Owing to above leads and lags of aggregate supply and aggregate demand, above said nominal variables and business cycle theory rests on thereof as under. Moreover, it could be argued that shortage causes upward movement in business cycle( recovery, prosperity, peak) and surplus causes downward movement in business cycle(recession ,depression) however, it may be perceived that shortage expansion and inflation co-exist so does surplus recession and deflation .

The word macroeconomics came into fashion in 1933, earlier discipline of Economics was restricted to Micro Economics , F...
20/10/2022

The word macroeconomics came into fashion in 1933, earlier discipline of Economics was restricted to Micro Economics , Forces of Demand and Supply were considered to be as invisible hand entailing doctrine of Lassiez Faire ( non-intervention of Govt) to determine the market Equilibrium till the emergence of Great depression U.S.A in 1929,, which was owing to surplus production rather than shortage. John Maynard Keynes, founder of Macro Economics identified overall four types of spendings in the economy termed it as Aggregate demand ( AD) = C + I+G+NX wherein , C stands for overall house- holds consumption, I stands for investment, G for Government purchases and NX for for Net exports /foreign spending on domestic goods and services. After such econmic scenario Government intervention came into practice inclusive taxes, engendering the concept of fiscal policy in the arena of Economics to regain the Equilibrium as well boost- up in the economy.

Analyisng the quantity theory of money propounded by Irving Fischer in his book ( purchasing power of money 1914) therei...
19/10/2022

Analyisng the quantity theory of money propounded by Irving Fischer in his book ( purchasing power of money 1914) therein MXV= PXQ where M stands for money supply, V stands for velocity of Money/number of times money changes hands/trade/transaction etc, P stands Price level and Q stands for output in the economy. if it is assumed that Money supply and Price level are kept constant then velocity of Money is directly proportional to output in the economy.that s why developed countries having viaible financial institutions and intermediaries who boost up the velocity of Money/trade/transactions found to have been raised their output/ GDP/ income level in the economy.

Specifically the term production implies process of putting utility into whereas consumption means process of extracting...
16/10/2022

Specifically the term production implies process of putting utility into whereas consumption means process of extracting utility from resource.

Equilibrium in Economics is an ideal norm but temporary phenomenon because resources and wants are dynamic, so does prod...
16/10/2022

Equilibrium in Economics is an ideal norm but temporary phenomenon because resources and wants are dynamic, so does production, so does consumption implying Supply and demand ever,changing from time to time at micro and macro level , however, Equilibrium is found to be itself dynamic , ever-changing like waves of ocean .Devolpment process is too dynamic to be hedged since it's very emergence.

15/10/2022

Fiscal policy deals with management of spendings and taxes whereas Monetary policy deals with management of money supply and interset rate in the economy.

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