Misery Index: Impact on GDP and Cost of Living in India (KEY IJP************327)

• Abhishek Sharma,Aashish Samuel

Abstract

Abstract: Misery Index establishes the relationship between inflation and unemployment level in the economy. It is the sum total of inflation and unemployment. It was proposed by Arthur Okun in 1960. It further suggests the fear of joblessness and economic distress due to the increased cost of living. In this research paper, we are going to study the impact of increasing inflation and unemployment on GDP. We are going to assess the previous ten years data of inflation, unemployment and GDP to find the effect of Misery index on Indias GDP. This Research is trying to evaluate the effect of increasing inflation rate on unemployment and GDP. It will further examine the contribution of increased cost of living on unemployment level and overall GDP of the economy. The study will suggest the effect of inflation and unemployment on per capita GDP. This study is going to advice on various tools and techniques to reduce the misery index of an economy, so the people of the country may get rid of the economic distress.Keywords: Misery Index, GDP, Inflation, Unemployment, Cost of Living, Economic distress