SlideShare a Scribd company logo
Inflation & unemployment
Inflation & Phillips curve: ,[object Object],[object Object]
Causes of Inflation: ,[object Object],[object Object]
Demand pull : Increase in AD can be due to a fiscal or monetary policy, thus increasing prices
Cost push: Upward shift of the AS will be due to increase in costs due to increase in price of inputs.
Stagflation: ,[object Object],[object Object]
Combination of both:
Costs of inflation: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Philips Curve: ,[object Object],[object Object]
Phillips Curve: ,[object Object],[object Object],[object Object],[object Object]
[object Object],Wage growth % (Inflation) Unemployment (%) The Phillips Curve shows an inverse relationship between inflation and unemployment. It suggested that if governments wanted to reduce unemployment it had to accept higher inflation as a trade-off. Money illusion – wage rates rising but individuals not factoring in inflation on real wage rates. 1.5% 6% 4% 2.5% PC1
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Long run Phillips curve: ,[object Object],[object Object]
[object Object],The Philips Curve Unemployment Long Run PC PC1 PC2 PC3 Assume the economy starts with an inflation rate of 1% but very high unemployment at 7%. Government takes measures to reduce unemployment by an expansionary fiscal policy that pushes AD to the right (see the AD/AS diagram on slide 15)  7% 2.0% 1.0% There is a short term fall in unemployment but at a cost of higher inflation. Individuals now base their wage negotiations on expectations of higher inflation in the next period. If higher wages are granted then firms costs rise – they start to shed labour and unemployment creeps back up to 7% again. 3.0% To counter the rise in unemployment, government once again injects resources into the economy – the result is a short-term fall in unemployment but higher inflation. This higher inflation fuels further expectation of higher inflation and so the process continues. The long run Phillips Curve is vertical at the natural rate of unemployment. This is how economists have explained the movements in the Phillips Curve and it is termed the  Expectations Augmented Phillips Curve.
[object Object],[object Object]
Countering inflation: Demand -pull Reduce demand by higher taxation, lower govt. expenditure, lower govt borrowing, higher interest rates Cost push Take steps to reduce production costs by deregulating labour markets, encouraging greater productivity, apply control over wages and prices Import factors reduce quantity of imports or their prices via trade policies.
Controlling inflation (cont) Excessive growth on money supply Reduce money supply by cutting down on public sector borrowing Funding Govt borrowing from non bank Reduce bank lending Maintain interest rates Expectations of inflation Pursue policies which indicate Govt’s determination to reduce inflation
Types of Unemployment: ,[object Object],[object Object],[object Object]
Types of Unemployment: ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Okun’s Law: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Philips curve
Philips curvePhilips curve
Philips curve
Divya Jain
 
7. consumption function
7. consumption function7. consumption function
7. consumption function
santumane
 
Chapter 7 - inflation ,unemployment and underemployment for BBA
Chapter 7 - inflation ,unemployment and underemployment for BBAChapter 7 - inflation ,unemployment and underemployment for BBA
Chapter 7 - inflation ,unemployment and underemployment for BBA
ginish9841502661
 
Demand and supply of money
Demand and supply of moneyDemand and supply of money
Demand and supply of money
Daksh Bapna
 
marginal efficiency of capital
marginal efficiency of capitalmarginal efficiency of capital
marginal efficiency of capital
Manohar Gupta
 
Aggregate supply
Aggregate supplyAggregate supply
Aggregate supply
Umair Aslam
 
Stabilisation policy
Stabilisation policyStabilisation policy
Stabilisation policy
Prabha Panth
 
General equilibrium theory
General equilibrium theoryGeneral equilibrium theory
General equilibrium theory
kevalkakadiya
 
Structuralist theory of inflation
Structuralist theory of inflationStructuralist theory of inflation
Structuralist theory of inflation
Prabha Panth
 
Inflation
InflationInflation
Inflation
Sunil Meena
 
Demand for money
Demand for moneyDemand for money
Demand for money
Dr. Mani Madhavan
 
Inflation
InflationInflation
Theories of economic development
Theories of economic developmentTheories of economic development
Theories of economic development
Vaibhav verma
 
Classical theory of employment
Classical theory of employmentClassical theory of employment
Classical theory of employment
Mahendra Kumar Ghadoliya
 
Macro-Economic Policy
Macro-Economic PolicyMacro-Economic Policy
Macro-Economic Policy
mattbentley34
 
Determinants of Consumption Function
Determinants of Consumption Function Determinants of Consumption Function
Determinants of Consumption Function
Murugan Kaliappani
 
types of inflation and inflationary and deflationary gap
types of inflation and  inflationary and deflationary gap types of inflation and  inflationary and deflationary gap
types of inflation and inflationary and deflationary gap
ayazmashori
 
1 say's law of markets
1 say's law of markets1 say's law of markets
1 say's law of markets
Prem Raj Bhatta
 
Chapter 1 keynes and the classic (Scarth)
Chapter 1 keynes and the classic (Scarth)Chapter 1 keynes and the classic (Scarth)
Chapter 1 keynes and the classic (Scarth)
Abdul Hadi Ilman
 
classical vs keynesian economics
classical vs keynesian economicsclassical vs keynesian economics
classical vs keynesian economics
Rahul Şınğh
 

What's hot (20)

Philips curve
Philips curvePhilips curve
Philips curve
 
7. consumption function
7. consumption function7. consumption function
7. consumption function
 
Chapter 7 - inflation ,unemployment and underemployment for BBA
Chapter 7 - inflation ,unemployment and underemployment for BBAChapter 7 - inflation ,unemployment and underemployment for BBA
Chapter 7 - inflation ,unemployment and underemployment for BBA
 
Demand and supply of money
Demand and supply of moneyDemand and supply of money
Demand and supply of money
 
marginal efficiency of capital
marginal efficiency of capitalmarginal efficiency of capital
marginal efficiency of capital
 
Aggregate supply
Aggregate supplyAggregate supply
Aggregate supply
 
Stabilisation policy
Stabilisation policyStabilisation policy
Stabilisation policy
 
General equilibrium theory
General equilibrium theoryGeneral equilibrium theory
General equilibrium theory
 
Structuralist theory of inflation
Structuralist theory of inflationStructuralist theory of inflation
Structuralist theory of inflation
 
Inflation
InflationInflation
Inflation
 
Demand for money
Demand for moneyDemand for money
Demand for money
 
Inflation
InflationInflation
Inflation
 
Theories of economic development
Theories of economic developmentTheories of economic development
Theories of economic development
 
Classical theory of employment
Classical theory of employmentClassical theory of employment
Classical theory of employment
 
Macro-Economic Policy
Macro-Economic PolicyMacro-Economic Policy
Macro-Economic Policy
 
Determinants of Consumption Function
Determinants of Consumption Function Determinants of Consumption Function
Determinants of Consumption Function
 
types of inflation and inflationary and deflationary gap
types of inflation and  inflationary and deflationary gap types of inflation and  inflationary and deflationary gap
types of inflation and inflationary and deflationary gap
 
1 say's law of markets
1 say's law of markets1 say's law of markets
1 say's law of markets
 
Chapter 1 keynes and the classic (Scarth)
Chapter 1 keynes and the classic (Scarth)Chapter 1 keynes and the classic (Scarth)
Chapter 1 keynes and the classic (Scarth)
 
classical vs keynesian economics
classical vs keynesian economicsclassical vs keynesian economics
classical vs keynesian economics
 

Similar to Inflation & unemployment

Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02
University of Johannesburg
 
Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02
University of Johannesburg
 
Inflation+&+unemployment
Inflation+&+unemploymentInflation+&+unemployment
Inflation+&+unemployment
videoaakash15
 
Chapter 10 & 11
Chapter 10 & 11Chapter 10 & 11
Chapter 10 & 11
Aditi Thakur
 
Unit3 hl
Unit3 hlUnit3 hl
Unit3 hl
Corey Topf
 
Macro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest RateMacro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest Rate
Zeeshan Ali
 
Meeting 4 - Phillips curve (Macroeconomics)
Meeting 4 - Phillips curve (Macroeconomics)Meeting 4 - Phillips curve (Macroeconomics)
Meeting 4 - Phillips curve (Macroeconomics)
Albina Gaisina
 
AN EASSAY ON PHILLIPS CURVE
AN EASSAY ON PHILLIPS CURVEAN EASSAY ON PHILLIPS CURVE
AN EASSAY ON PHILLIPS CURVE
Shubham Soni
 
Inflation
InflationInflation
Inflation
Hammaduddin
 
Module33 typesofinflation,disinflation,anddeflation
Module33 typesofinflation,disinflation,anddeflationModule33 typesofinflation,disinflation,anddeflation
Module33 typesofinflation,disinflation,anddeflation
American School of Guatemala
 
Inflation
InflationInflation
Inflation
Hammaduddin
 
Inflation causes and its measures
Inflation causes and its measuresInflation causes and its measures
Inflation causes and its measures
Soniya Balan
 
theories of inflation and diff effects.pdf
theories of inflation and diff effects.pdftheories of inflation and diff effects.pdf
theories of inflation and diff effects.pdf
Ayushi Thakur
 
Module 34 inflation and umemployment the phillips curve
Module 34 inflation and umemployment the phillips curveModule 34 inflation and umemployment the phillips curve
Module 34 inflation and umemployment the phillips curve
American School of Guatemala
 
Long run and short run Philips curve by A W Philips.
Long run and short run Philips curve by A W Philips.Long run and short run Philips curve by A W Philips.
Long run and short run Philips curve by A W Philips.
maitrytaylor01
 
Inflation.pdf
Inflation.pdfInflation.pdf
Inflation.pdf
RitvikShukla6
 
Inflation in srilanka
Inflation in srilankaInflation in srilanka
Inflation in srilanka
Tharushika Ruwangi
 
Inflation
InflationInflation
Inflation
manuelmathew1
 
Macroeconomics Report on Hyperinflation
Macroeconomics Report on HyperinflationMacroeconomics Report on Hyperinflation
Macroeconomics Report on Hyperinflation
Neha Kumar
 
20121125 mankiw economics chapter35
20121125 mankiw economics chapter3520121125 mankiw economics chapter35
20121125 mankiw economics chapter35
FED事務局
 

Similar to Inflation & unemployment (20)

Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02
 
Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02Inflationunemployment 120127094754-phpapp02
Inflationunemployment 120127094754-phpapp02
 
Inflation+&+unemployment
Inflation+&+unemploymentInflation+&+unemployment
Inflation+&+unemployment
 
Chapter 10 & 11
Chapter 10 & 11Chapter 10 & 11
Chapter 10 & 11
 
Unit3 hl
Unit3 hlUnit3 hl
Unit3 hl
 
Macro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest RateMacro Economics: Phillips Curve, Inflation and Interest Rate
Macro Economics: Phillips Curve, Inflation and Interest Rate
 
Meeting 4 - Phillips curve (Macroeconomics)
Meeting 4 - Phillips curve (Macroeconomics)Meeting 4 - Phillips curve (Macroeconomics)
Meeting 4 - Phillips curve (Macroeconomics)
 
AN EASSAY ON PHILLIPS CURVE
AN EASSAY ON PHILLIPS CURVEAN EASSAY ON PHILLIPS CURVE
AN EASSAY ON PHILLIPS CURVE
 
Inflation
InflationInflation
Inflation
 
Module33 typesofinflation,disinflation,anddeflation
Module33 typesofinflation,disinflation,anddeflationModule33 typesofinflation,disinflation,anddeflation
Module33 typesofinflation,disinflation,anddeflation
 
Inflation
InflationInflation
Inflation
 
Inflation causes and its measures
Inflation causes and its measuresInflation causes and its measures
Inflation causes and its measures
 
theories of inflation and diff effects.pdf
theories of inflation and diff effects.pdftheories of inflation and diff effects.pdf
theories of inflation and diff effects.pdf
 
Module 34 inflation and umemployment the phillips curve
Module 34 inflation and umemployment the phillips curveModule 34 inflation and umemployment the phillips curve
Module 34 inflation and umemployment the phillips curve
 
Long run and short run Philips curve by A W Philips.
Long run and short run Philips curve by A W Philips.Long run and short run Philips curve by A W Philips.
Long run and short run Philips curve by A W Philips.
 
Inflation.pdf
Inflation.pdfInflation.pdf
Inflation.pdf
 
Inflation in srilanka
Inflation in srilankaInflation in srilanka
Inflation in srilanka
 
Inflation
InflationInflation
Inflation
 
Macroeconomics Report on Hyperinflation
Macroeconomics Report on HyperinflationMacroeconomics Report on Hyperinflation
Macroeconomics Report on Hyperinflation
 
20121125 mankiw economics chapter35
20121125 mankiw economics chapter3520121125 mankiw economics chapter35
20121125 mankiw economics chapter35
 

More from Kinnar Majithia

South korea final
South korea finalSouth korea final
South korea final
Kinnar Majithia
 
Fiscal policy
Fiscal policyFiscal policy
Fiscal policy
Kinnar Majithia
 
Business+cycles
Business+cyclesBusiness+cycles
Business+cycles
Kinnar Majithia
 
Business cycles 2
Business cycles 2Business cycles 2
Business cycles 2
Kinnar Majithia
 
Aggregate+demand+&supply
Aggregate+demand+&supplyAggregate+demand+&supply
Aggregate+demand+&supply
Kinnar Majithia
 
Aggregate demand &supply
Aggregate demand &supplyAggregate demand &supply
Aggregate demand &supply
Kinnar Majithia
 
National income accounting 1
National income accounting 1National income accounting 1
National income accounting 1
Kinnar Majithia
 
Lesson 18 weath-2
Lesson 18 weath-2Lesson 18 weath-2
Lesson 18 weath-2
Kinnar Majithia
 
Lesson 16 advanced tax
Lesson 16 advanced taxLesson 16 advanced tax
Lesson 16 advanced tax
Kinnar Majithia
 
Lesson 15
Lesson 15Lesson 15
Lesson 15
Kinnar Majithia
 
Lesson 14
Lesson 14Lesson 14
Lesson 14
Kinnar Majithia
 
Lesson 13
Lesson 13Lesson 13
Lesson 13
Kinnar Majithia
 
Lesson 12 deductions
Lesson 12 deductionsLesson 12 deductions
Lesson 12 deductions
Kinnar Majithia
 
Lesson 11
Lesson 11Lesson 11
Lesson 11
Kinnar Majithia
 
Lesson 10 clubbing of -income
Lesson 10 clubbing of -incomeLesson 10 clubbing of -income
Lesson 10 clubbing of -income
Kinnar Majithia
 
Lesson 9
Lesson 9Lesson 9
Lesson 9
Kinnar Majithia
 
Lesson 8 capital-gains
Lesson 8 capital-gainsLesson 8 capital-gains
Lesson 8 capital-gains
Kinnar Majithia
 
Lesson 7 income frm-bbusi
Lesson 7 income frm-bbusiLesson 7 income frm-bbusi
Lesson 7 income frm-bbusi
Kinnar Majithia
 
Lesson 6 income from house pro
Lesson 6 income from house proLesson 6 income from house pro
Lesson 6 income from house pro
Kinnar Majithia
 
Lesson 5 percs
Lesson 5 percsLesson 5 percs
Lesson 5 percs
Kinnar Majithia
 

More from Kinnar Majithia (20)

South korea final
South korea finalSouth korea final
South korea final
 
Fiscal policy
Fiscal policyFiscal policy
Fiscal policy
 
Business+cycles
Business+cyclesBusiness+cycles
Business+cycles
 
Business cycles 2
Business cycles 2Business cycles 2
Business cycles 2
 
Aggregate+demand+&supply
Aggregate+demand+&supplyAggregate+demand+&supply
Aggregate+demand+&supply
 
Aggregate demand &supply
Aggregate demand &supplyAggregate demand &supply
Aggregate demand &supply
 
National income accounting 1
National income accounting 1National income accounting 1
National income accounting 1
 
Lesson 18 weath-2
Lesson 18 weath-2Lesson 18 weath-2
Lesson 18 weath-2
 
Lesson 16 advanced tax
Lesson 16 advanced taxLesson 16 advanced tax
Lesson 16 advanced tax
 
Lesson 15
Lesson 15Lesson 15
Lesson 15
 
Lesson 14
Lesson 14Lesson 14
Lesson 14
 
Lesson 13
Lesson 13Lesson 13
Lesson 13
 
Lesson 12 deductions
Lesson 12 deductionsLesson 12 deductions
Lesson 12 deductions
 
Lesson 11
Lesson 11Lesson 11
Lesson 11
 
Lesson 10 clubbing of -income
Lesson 10 clubbing of -incomeLesson 10 clubbing of -income
Lesson 10 clubbing of -income
 
Lesson 9
Lesson 9Lesson 9
Lesson 9
 
Lesson 8 capital-gains
Lesson 8 capital-gainsLesson 8 capital-gains
Lesson 8 capital-gains
 
Lesson 7 income frm-bbusi
Lesson 7 income frm-bbusiLesson 7 income frm-bbusi
Lesson 7 income frm-bbusi
 
Lesson 6 income from house pro
Lesson 6 income from house proLesson 6 income from house pro
Lesson 6 income from house pro
 
Lesson 5 percs
Lesson 5 percsLesson 5 percs
Lesson 5 percs
 

Recently uploaded

How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
Nguyen Thanh Tu Collection
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
mulvey2
 
How to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRMHow to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRM
Celine George
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
heathfieldcps1
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
imrankhan141184
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Excellence Foundation for South Sudan
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Fajar Baskoro
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
Priyankaranawat4
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
Katrina Pritchard
 
The Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collectionThe Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collection
Israel Genealogy Research Association
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
GeorgeMilliken2
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
PIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf IslamabadPIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf Islamabad
AyyanKhan40
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
Priyankaranawat4
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
Dr. Mulla Adam Ali
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
paigestewart1632
 

Recently uploaded (20)

How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
 
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptxC1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
C1 Rubenstein AP HuG xxxxxxxxxxxxxx.pptx
 
How to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRMHow to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRM
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
 
The Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collectionThe Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collection
 
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
What is Digital Literacy? A guest blog from Andy McLaughlin, University of Ab...
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
 
PIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf IslamabadPIMS Job Advertisement 2024.pdf Islamabad
PIMS Job Advertisement 2024.pdf Islamabad
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
Hindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdfHindi varnamala | hindi alphabet PPT.pdf
Hindi varnamala | hindi alphabet PPT.pdf
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
 

Inflation & unemployment

  • 2.
  • 3.
  • 4. Demand pull : Increase in AD can be due to a fiscal or monetary policy, thus increasing prices
  • 5. Cost push: Upward shift of the AS will be due to increase in costs due to increase in price of inputs.
  • 6.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. Countering inflation: Demand -pull Reduce demand by higher taxation, lower govt. expenditure, lower govt borrowing, higher interest rates Cost push Take steps to reduce production costs by deregulating labour markets, encouraging greater productivity, apply control over wages and prices Import factors reduce quantity of imports or their prices via trade policies.
  • 17. Controlling inflation (cont) Excessive growth on money supply Reduce money supply by cutting down on public sector borrowing Funding Govt borrowing from non bank Reduce bank lending Maintain interest rates Expectations of inflation Pursue policies which indicate Govt’s determination to reduce inflation
  • 18.
  • 19.
  • 20.
  • 21.