Major Roles Of Unemployment And Macroeconomic Problems In Pakistan

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The development process of any country is measured using different indicies/method . The one of these indicies, which is most commonly used in the world is economic growth. Economic growth shows the capacity increases in the amount of goods and services produced in the economy and also shows the productive capacity of an economy, it is also shows the national income of any country. In Pakistan unemployment and inflation play an important role. Both are the major issues in Pakistan. Unemployment has a great importance among macroeconomic Problem, It will not only put negative impact on economic indicators of country but, it will also hurts the social norms of such country. Unemployment is a situation in which people are …show more content…

Due to inflation price level rises, purchasing power of general public goes down. When aggregate demand decreases supply less accordingly. Role of inflation in economy is negative overall. If producer produce less then employment opportunity may also goes down. Budget constraint of public may also shrink more then in order to tackle this problem then govt print excess supply of notes / money and when any extra money is created in economy It will increases the buying power of people . The role of inflation in the economics is found to be cause of decline in the value of money, Inflation is another macroeconomic problem which also hurts the economic indicator of Pakistan. Inflation has also a negative impact on economic …show more content…

1.2 SIGNIFICANCE OF STUDY: Pakistan facing many problems through unemployment , inflation and trade openness since a long period of time. It has bad impact on economic growth and these types of evils increases day by day which is harmful for the economy. * To find long run and short run association among dependent and independent variable Auto Regressive Lag (ARDL) model will be used.
* Unemployment, Inflation, Trade openness are used as independent variable while GDP is dependent variable in this study.
1.4 ORGANIZATION OF

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