A resident is said to be a person (or an institution) who ordinarily resides in a country and whose centre of economic interest lies in that country. He is called a normal resident since he normally lives in the country of his economic interest. The period of stay should be at least one year or more. Thus (1) staying for more than a year, and (2) having economic interest are the two normal conditions for becoming a normal resident. It needs to be kept in mind that national income is the sum total of income of only normal residents of a country in a year. Here following points needs to be noted.
(i)    Normal residents cover both individuals and institutions.
(ii)    Normal residents include both citizens and non-citizens i.e. foreigners who reside in a country for more than a year and have economic interest in that country.
(iii)    International bodies (like World Bank, World Health Organisation or International Monetary Fund) are not considered residents of the country in which these organisations operate but are treated as residents of international territory. However, the staff of these bodies are treated as normal residents of the country in which the international body operates. For example, international body like World Health Organisation located in India is not normal resident of India but Americans working in its office for more than a year will be treated as normal residents of India.
(iv)    Local employees working in foreign embassies located in their country are treated as normal residents. For example, Indians working in U.S.A. embassy located in India are residents of India.
(v)    Workers from across the border who cross border in the morning to work in the other country (like Indians who work in Nepal) and return in the evening are not residents of the country where they work.
For example normal residents of India include
(i)    citizens (and institutions) of India.
(ii)    citizens of other countries (i.e. non-citizens) who normally reside in India for more than a year and whose centre of economic interest lies in India.
(iii)    Citizens of India working in (a) international bodies (like I.M.F.), (b) foreign bodies (like banks, enterprises) operating in India and (c) foreign embassies located in India.

A resident is said to be a person (or institution) who ordinarily resides in a country and whose centre of economic interest lies in that country. He is called a normal resident since he normally lives in the country of his economic interest. The period of stay should be at least one year or more.

Inflationary gap occurs when AD>AS corresponding to full employment level. This inflationary gap, i.e. excess of Aggregate Demand causes inflation in the economy and price levels tend to rise.

In this figure,
{{AD}_{FE}} = AD at full employment level
{{AD}_{AE}} = AD above full employment level

The point E is the equilibrium point where AD= AS. But there is excess demand (current) at {{AD}_{AE}}, where Aggregate
Demand FP is more than the Aggregate Supply in the economy. This difference of actual Aggregate Demand and
Supply, i.e. EF is the inflationary gap.
Inflationary Gap = Excess Demand = {{AD}_{AE}} -
{{AD}_{FE}} = EF
Role of Legal Reserves to Correct the Problem of Inflationary Gap
Legal reserves like Cash Reserve Ratio and Statutory Liquidity Ratio are the tools to correct the problem of inflationary
gap:
(i) Cash Reserve Ratio (CRR) Each and every commercial bank has to keep a certain proportion of its demand and time deposits in the form of cash and other liquid assets with the Central Bank. This ratio is termed as Cash Reserve Ratio. To correct the problem of inflationary gap, the Central Bank increases the CRR. It reduces the supply of money and credit creation capabilities of commercial banks. Due to lesser supply of money, the Aggregate Demand comes down and the economy attains equilibrium situation.
(ii) Statutory Liquidity Ratio (SLR) It refers to a fixed percentage of the total assets of a bank in the form of cash or other liquid assets that is required to be maintained by the bank. During the situation of inflationary gap, SLR is increased. This reduces the credit creation capacity of commercial banks and reduces the flow of money in the economy. As a result of that, the Aggregate Demand comes down and ultimately, the economy attains equilibrium.

Market price is for a particular time but normal price is for a period of time. Market price is the price prevailing on a particular day or a particular time. It is the result of market demand and supply. Normal price, on the other hand, is the result of long period demand and long period supply.

Economic Reforms:

Economic reforms or structural adjustment is a long term multi dimensional package of various policies (Liberalisation, privatisation and globalisation) and programme for the speedy growth, efficiency in production and make a competitive environment. Economic reforms were adopted by Indian Govt. in 1991.

Factor’s responsible for Economic reforms.

1. Fall in foreign exchange reserve : as imports grew faster than exports
2. Adverse balance of payments resulted repayment crisis
3. Mounting fiscal deficit as govt. expenditure grew faster than revenue
4. Rise in prices, which has the negative impact on Investment.
5. Failure of public enterprises:- very low return on high Investment
6. Gulf crisis increases crude oil prices which negatively affected BOP.
7. High rate of deficit financing
8. Collapse of soviet block.

New Economic Policy:- It refers to economic reforms introduced since 1991 to improve the productivity and profitability of economy and to make it globally competitive.

Measures of New Economic policy

Stabilisation measures: These are short run measures introduced by Govt to control rise in price, adverse balance of payment and fall in foreign ex-change reserve.

Structural adjustment: These are long run policies, aimed at improving the efficiency of the economy and increasing its international competiveness by removing the rigidity in various segment of the Indian economy.

In the new economic policy 1991, Structural reforms can be seen with respect to.
1. Liberalisation.
2. Privatisation
3. Globalisation.

For more click on the given link:

<a href="https://mycbseguide.com/blog/economic-reform-since-1991-class-11-notes-economics/" ping="/url?sa=t&source=web&rct=j&url=https://mycbseguide.com/blog/economic-reform-since-1991-class-11-notes-economics/&ved=2ahUKEwiKv_ar-7XtAhWIzzgGHUcGAVYQFjABegQIAxAC" rel="noopener" target="_blank">Economic Reform Since 1991 class 12 Notes Economics</a>

Global Burden of Disease (GBD) is an indicator used by the experts to measure the number of people dying prematurely due to a particular disease. This also includes the number of years spent by them in a state of disability due to various diseases. India bears a frightening 20 % of the GBD. More than half of the GBD is accounted by communicable diseases such as diarrhea, malaria and tuberculosis. 

Market price is for a particular time but normal price is for a period of time. Market price is the price prevailing on a particular day or a particular time. It is the result of market demand and supply. Normal price, on the other hand, is the result of long period demand and long period supply.

The policy of protection is based on the notion that industries of developing countries are not in a position to compete against the goods produced by more developed economies. It is assumed that if the domestic industries are protected they will learn to compete in the course of time.

1. Deregulation of Industrial Sector: removed many of the restrictions.
2. Industrial licensing was abolished from almost industries.
3. Financial sector includes financial institutions, such as commercial banks, investment banks, stock exchange operations and foreign exchange market.

In nature, a given habitat has enough resources to support a maximum possible number, beyond which no further growth is possible. This limit known as nature’s carrying capacity (K) for that species in that habitat.

The carrying capacity of an environment is the maximum population size of a biological species that can be sustained in that specific environment, given the food, habitat, water, and other resources available.

In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of the aggregate demand and the short-run aggregate supply curves. In the short run, output can be either below or above potential output. Output is at its equilibrium when quantity of output produced (AS) is equal to quantity demanded (AD). The economy is in equilibrium when aggregate demand represented by C + I is equal to total output.

Green GNP. GNP does not take into consideration the cost in terms of (i) environmental pollution, and (ii) depletion of natural resources caused by production of output. Mere increase in GNP will not reflect improvement in quality of life if it increases environmental pollution or reduces available resources for future generations. That is why concept of Green GNP has been introduced while measuring economic welfare.
Green GNP is defined as "GNP which is indicator of a sustainable use of natural environment and equitable distribution of benefits of development." This concept denotes the following characteristics (i) Sustainable economic development, i.e., development which should not cause environmental degradation (pollution) and depletion of natural resources (ii) Equitable distribution of benefits of its of development. (iii) Promotes economic welfare for a long period of time.
Expressed in the form of an equation:
Green GNP = GNP - Net fall in stock of national capital

• Collectivisation, consolidation of land holdings, cooperation and abolition of zamindari etc. were given priority to bring institutional reforms in the country after independence. 
• Land reform was the main focus of our first Five Year Plan. The right of inheritance had already led to fragmentation of land holdings necessitating consolidation of land holdings. 
• The Government of India embarked upon introducing agricultural reforms to improve Indian agriculture in the 1960's and 1970's. 
• The Green Revolution based on the use of package technology and the White Revolution were some of the strategies initiated to improve a lot of Indian agriculture. 
• Provision for crop insurance against flood, drought, cyclone, fire and disease, the establishment of Grameen banks,  cooperative societies and banks for providing loan facilities to the farmers at lower rates of interest were some important steps in this direction. 
• Kissan Credit Card (KCC), Personal Accident Insurance Scheme (PAIS), are some other schemes introduced by the government of India for the benefit of farmers. 

In the case of contemporary employment, the current prevailing situation in India is that there is lack of employment.

The issue of unemployment has existed in India for a long time now.

There have been increasing issues for the youth who graduate from good universities but go out into the market which is making people redundant.

There would be issues for reservation in such cases.

Reservation is the case, where the Indian government chooses a certain gender. Example, giving jobs to men over women due to personal gains. This affects the growth system in an economy

The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 percent in 1990-91. The rise in the industry's share of GDP is an important indicator of development. The six per cent annual growth rate of the industrial sector during the period is commendable. This policy envisaged mixed economy wherein public and private sector would coexist. It underlined the need for increased state participation in industrial progress. It called for assistance to small-scale industries and welcomed foreign capital.

In India, between 1950 and 1990, the proportion of GDP contributed by agriculture declined significantly but not the population depending on it (67.5 per cent in 1950 to 64.9 per cent by 1990). The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 per cent in 1990-91. The rise in the industry's share of GDP is an important indicator of development. The six per cent annual growth rate of the industrial sector during the period is commendable.

Use the given formulas:

(a) Revenue Deficit = Revenue Expenditure − Revenue Receipts

(b) Fiscal Deficit = Revenue Expenditure + Capital Expenditure− Revenue Receipts− Capital Receipts net of Borrowings

(c) Primary Deficit = Fiscal Deficit − Interest Payments

Under employment equilibrium occurs when AS = AD, short of their full employment level. Measures to correct under employment equilibrium:
(i) Bank rate Central Bank should decrease the bank rate. A decrease in bank rate lowers the rate of interest and credit becomes cheap. Accordingly, the demand for credit expands and Aggregate Demand increases.
(ii) Open market operations By buying the government securities, the Central Bank injects additional purchasing power into the system which results in the expansion of credit. As a result, Aggregate Demand increased.

Opportunity cost is the cost in terms of foregone opportunities of doing things. There has been a reversal of supply-demand relationship for environmental quality. We are now faced with increased demand for environmental resources and services but their supply is limited due to overuse resulting from rise in population, affluent consumption patterns and industrialization. Many resources have become extinct and the wastes generated are beyond the absorptive capacity of the environment. This negative environmental Impact has high opportunity costs as explained below
(i) The industrial development in past has polluted and dried up rivers and other aquifers making water an economic good. Cleaning up of polluted rivers and replenishing water resources require huge investments.

(ii) The intensive and extensive extraction of both renewable and non-renewable resources are exhausted. Some of these vital resources and huge amount of funds need to be spent on technology and research to explore new resources.

(iii) The health costs of degraded environmental quality are also present as decline in air and water quality have resulted in increased incidence of respiratory and water-borne diseases.

(iv) Global environmental issues such as global warming and ozone depletion also contribute lo increased financial commitments for the government. Thus, it is clear that the opportunity costs of negative environmental impacts are high.