salam...
please give me information about growth inflation relationship....??

got confused....

if you earn rs 100 in year 1 and in the second year you earn rs 105, then your income has grown from rs 100 to rs 105 and the growth in your income was rs 5. but if the inflation rate is 10% then nominally your income has grown by rs. 5 but in real terms your income has gone down.
technically when the inflation rate is reduced from GDP growth rate then you get real GDP growth rate.
hope that helped.

salam...
please give me information about growth inflation relationship....??

got confused....



Growth-Inflation relationships have to be analysed.

Growth basically refers to Economic Growth that essentially means a growth in National Output/GDP that you denote on the Horizontal Axis with Price on the Vertical Axis in the AD/AS (Aggregate Demand and Aggregate Supply) framework of analysis.

There are two scenarios whereby you can relate to the question. The first is when you hold all the factors affecting AS constant thereby holding AS constant and only moving the Aggregate Demand (either inwards or outwards) depending on Fiscal/Monetary/Export expansion or contraction. Over here Prices and Output move in the same direction. If AD moves outwards (to the right) both price and output increases and if it moves inwards (to the left) both decrease thus leading to a positive relationship between the two. Therefore a positive relationship between Growth and Inflation.

In the second case, consider that all Fiscal and Monetary (and export) factors that determine the movement of AD are held constant (therefore AD is constant) and that now there are changes in the AS. You will notice that AS is upward sloping. So when AS moves downwards (to the right) Prices fall and output rises whereas when AS moves to the left, Prices rises and output falls.
therefore depicting a Negative relationship. Thus you see that there is a negative relationship between Growth-Inflation.

growth and developm,ent are change.. raise ur knowledge about them.. you are mixing up these two.. grow and development. the gdp comes in development that changes ur whole economy and growth is somehow rise in national income..