Impact of Inflation and Unemployment on The Economic Growth of Pakistan

ABSTRACT

One of the most important targets for any developing country like Pakistan is to achieve economic growth. Even though there are many factors that affect economic growth, but the focus of this study is only inflation and unemployment. The relationship between inflation and unemployment with economic growth is debatable. The main objective of this study to examine the impact of inflation and unemployment on the economic growth of Pakistan. SPSS is applied to obtain empirical results. In this study descriptive statistics and linear regression model is used to examine the impact of inflation and unemployment on the economic growth of Pakistan during the period from 2008-2017. For analysis Gross domestic product is taken as dependent variable while inflation and unemployment are taken as independent variables. Data is collected by information provided by the State bank of Pakistan. The findings of the research shows that there is a negative relationship exist between inflation, Unemployment with Gross domestic product of Pakistan.

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