'The Government and policymakers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples.
'The Government and policymakers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples.
The statistical data provide the base for the Government and the policy makers to formulate policies. The statistical data not only help them to analyse and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies. Statistical data also help the Government to ascertain the relationship between economic variables and form policies accordingly.
For example, if the Indian Government aims at increasing the national output, then it formulates its investment expenditure policy based on the capital-output ratio in the past few years. Another example could be the preparation of monetary policy. The previous data on inflation and economic growth are taken into consideration for estimating the money supply required in the next period.
The statistical data provide the base for the Government and the policy makers to formulate policies. The statistical data not only help them to analyse and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies. Statistical data also help the Government to ascertain the relationship between economic variables and form policies accordingly.
For example, if the Indian Government aims at increasing the national output, then it formulates its investment expenditure policy based on the capital-output ratio in the past few years. Another example could be the preparation of monetary policy. The previous data on inflation and economic growth are taken into consideration for estimating the money supply required in the next period.
