The document discusses the relationships between inflation, unemployment, and output. It covers topics like the types and measurement of unemployment, the Phillips curve relationship between inflation and unemployment, Okun's law linking changes in unemployment to economic growth, and the sacrifice ratio measuring the output lost from reducing inflation.

1. Inflation Unemployment and Output

2. Cures for Inflation Balanced Budget Control of money supply Income control Price controls

5. Is little inflation good for the economy

6. Unemployment This represents persons who were not employed during the reference week, but who were actively seeking work, waiting to be called back to a job from which laid off, or waiting to report within 30 days to a new payroll job.

7. Natural Rate of unemployment Cyclical Unemployment Duration of unemployment Frequency of unemployment Underemployment Disguised unemployment

8. Relation between unemployment and inflation

9. Philips Curve Shows an empirical inverse relationship between the unemployment rate and increases in the nominal wage rate Phillips curve suggested a clear policy trade-off between the rate of inflation and the unemployment rate

10. The Original Phillips Curve for the United Kingdom

11. Relationship of Inflation and Unemployment: U.S. 1961-2002

12. Relationship between unemployment and output

13. Okun’s law An increase of 1 % in unemployment would cause a gap of 2.5% between the potential GDP and the actual GDP

14. Okun’s law in the United States: 1954-1998

15. Sacrifice Ratio Relationship between inflation and output Percentage of output lost for each one-percent reduction in the inflation rate