Professional Documents
Culture Documents
SUBMITTED BY:
1. ABDULLAH ALTAF BHESANIA
2. RAMAL SHAKOOR KHAN
3. MADIHA ILYAS BAWANY
4. KAMRAN QUREISHI
5. AASIYA YUNUS GHANI
Acknowledgements
As one a scholar said, “My parents brought me from the skies to the
earth, but my teacher put me back on the skies” and so did Mr Zia
Abbas Rizvi.
Executive Summary
Pakistan has undergone a significant economic growth during last few years,
but the core problems of the economy are still unsolved. Inflation and
unemployment remain still the major hurdles to the growth of Pakistan’s
economy. Our aim is to find the determinants of inflation and unemployment,
causes and corrective measures of it.
The last five years are reported as highly inflationary due to expansionary
monetary policy and high oil prices. Domestic production should be
encouraged instead of imports; investment should be done in capital goods
instead of luxuries. Agriculture sector should be given subsidies, foreign
investment should be attracted. Developed nations should be requested for
financial assistance. And lastly a strong monitoring system should be
established on different levels in order to have a sound evaluation of the
process at every stage.
INTRODUCTION:
UNEMPLOYMENT:
Unemployment, as defined by the International Labor Organization, occurs
when people are without jobs and they have actively looked for work within
the past four weeks. The unemployment rate is a measure of the prevalence
of unemployment and it is calculated as a percentage by dividing the
number of unemployed individuals by all individuals currently in the labor
force.
There remains considerable theoretical debate regarding the causes,
consequences and solutions for unemployment. Classical, neoclassical and
the Austrian School of economics focus on market mechanisms and rely on
the invisible hand of the market to resolve unemployment.
HISTORY:
In traditional societies, salary jobs did not exist yet, because money was not
invented yet. These cultures lived off the land directly, and the land
belonged to the tribe or to no one. Everyone knew how to build shelter and
make food. When these cultures invented currency and moved to the cities,
they began to depend on money to buy food from a middle man, instead of
growing, gathering, or hunting the food directly from nature. Dependence on
jobs to make money to buy food and shelter was the beginning of
unemployment.
CLASSICAL UNEMPLOYMENT:
Classical or real-wage unemployment occurs when real wages for a job are
set above the market-clearing level, causing the number of job-seekers to
exceed the number of vacancies.
Most economists have argued that unemployment increases the more the
government intervenes into the economy to try to improve the conditions of
those with jobs. For example, minimum wage laws raise the cost of laborers
with few skills to above the market equilibrium, resulting in people who wish
to work at the going rate but cannot as wage enforced is greater than their
value as workers becoming unemployed. Laws restricting layoffs made
businesses less likely to hire in the first place, as hiring becomes more risky,
leaving many young people unemployed and unable to find work.
However, this argument is criticized for ignoring numerous external factors
and overly simplifying the relationship between wage rates and
unemployment- in other words, that other factors may also affect
unemployment. It is noted that there can be unemployment when job market
is in equilibrium.
INVOLUNTARY UNEMPLOYMENT:
In The General Theory, Keynes argued that neo-classical economic theory did
not apply during recessions because of excessive savings and weak private
investment in an economy. In consequence, people could be thrown out of
work involuntarily and not be able to find acceptable new employment.
This conflict between the neoclassical and Keynesian theories has had strong
influence on government policy. The tendency for government is to curtail
and eliminate unemployment through increases in benefits and government
jobs, and to encourage the job-seeker to both consider new careers and
relocation to another city.
Involuntary unemployment does not exist in agrarian societies nor is it
formally recognized to exist in underdeveloped but urban societies, such as
the mega-cities of Africa and of India/Pakistan. In such societies, a suddenly
unemployed person must meet their survival needs either by getting a new
job at any price, becoming an entrepreneur, or joining the underground
economy of the hustler.
FULL EMPLOYMENT:
Short-Run Phillips Curve before and after Expansionary Policy, with Long-Run
Phillips Curve (NAIRU)
In demand-based theory, it is possible to abolish cyclical unemployment by
increasing the aggregate demand for products and workers. However,
eventually the economy hits an "inflation barrier" imposed by the four other
kinds of unemployment to the extent that they exist.
Some demand theory economists see the inflation barrier as corresponding
to the natural rate of unemployment. The "natural" rate of unemployment is
defined as the rate of unemployment that exists when the labour market is
in equilibrium and there is pressure for neither rising inflation rates nor
falling inflation rates. An alternative technical term for this rate is
the NAIRU or the Non-Accelerating Inflation Rate of Unemployment.
No matter what its name, demand theory holds that this means that if the
unemployment rate gets "too low," inflation will get worse and worse
(accelerate) in the absence of wage and price controls (incomes policies).
One of the major problems with the NAIRU theory is that no one knows
exactly what the NAIRU is (while it clearly changes over time). The margin of
error can be quite high relative to the actual unemployment rate, making it
hard to use the NAIRU in policy-making.
Another, normative, definition of full employment might be called
the ideal unemployment rate. It would exclude all types of unemployment
that represent forms of inefficiency. This type of "full employment"
unemployment would correspond to only frictional unemployment (excluding
that part encouraging the McJobs management strategy) and would thus be
very low. However, it would be impossible to attain this full-employment
target using only demand-side Keynesian stimulus without getting below
the NAIRU and suffering from accelerating inflation (absent incomes
policies). Training programs aimed at fighting structural unemployment
would help here.
To the extent that hidden unemployment exists, it implies that official
unemployment statistics provide a poor guide to what unemployment rate
coincides with "full employment".
STRUCTUAL UNEMPLOYMENT:
FRICTIONAL UNEMPLOYMENT:
HIDDEN UNEMPLOYMENT:
MEASUREMENT:
EQULIBRIUM UEMPLOYMENT
The equilibrium unemployment level is the difference between those who are
employed at a given wage rate and those who can work. In other words,
there is equilibrium with respect to the demand and supply of labour,
however, unemployment still exists because a proportion of the labour force
are not willing to work at that time and that wage rate.
DISEQUILIBRIUM UNEMPLOYMENT
It happens when the aggregate demand for labour is less than the aggregate
supply of labour at the current real wage rate.
14 Afghanistan 40 Herzegovina 29
1 Nauru 90 26 Mayotte
25.4
2 Liberia 85 15 Swaziland 40
27 Dominica 23
3 Zimbabwe 80 16 Marshall Islands
36 28 South Africa
4 Burkina Faso77 22.9
17 Yemen 35
5 Turkmenistan 29 Micronesia,
60 18 Macedonia, The Federated States of
Former Yugoslav 22
6 Cocos (Keeling) Republic of 33.5
Islands 60 30 Gabon21
19 Mali 30
7 Djibouti 59 31 Cape Verde 21
20 Mauritania 30
8 Zambia 50 32 Mozambique 21
21 Libya 30
9 Senegal 48 33 Comoros 20
22 Equatorial
10 Nepal 46 Guinea 30 34 East Timor 20
11 Lesotho 45 23 Cameroon 30 35 Saint Lucia 20
12 Gaza Strip 24 American Samoa 36 Sudan 18.7
41.3 29.8
37 Iraq 18.2
13 Kenya 40 25 Bosnia and
EFFECTS OF UNEMPLOYMENT
INDIVIDUAL:-
Unemployed individuals are unable to earn money to meet financial
obligations. Failure to pay mortgage payments or to pay rent may lead to
homelessness through foreclosure or eviction. Across the United States
the growing ranks of people made homeless in the foreclosure crisis are
generating tent cities. Unemployment increases susceptibility to
malnutrition, illness, mental stress, and loss of self-esteem, leading to
depression. According to a study published in Social Indicator Research,
even those who tend to be optimistic find it difficult to look on the bright
side of things when unemployed. Using interviews and data from German
participants aged 16 to 94 – including individuals coping with the stresses
of real life and not just a volunteering student population – the
researchers determined that even optimists struggled with being
unemployed.
Some hold that many of the low-income jobs are not really a better option
than unemployment with a welfare state (with its unemployment
insurance benefits). But since it is difficult or impossible to get
unemployment insurance benefits without having worked in the past,
these jobs and unemployment are more complementary than they are
substitutes. (These jobs are often held short-term, either by students or
by those trying to gain experience; turnover in most low-paying jobs is
high.)
SOCIAL:-
An economy with high unemployment is not using all of the resources,
specifically labour, available to it. Since it is operating below its
production possibility frontier, it could have higher output if all the
workforce were usefully employed. However, there is a trade-off between
economic efficiency and unemployment: if the frictionally unemployed
accepted the first job they were offered, they would be likely to be
operating at below their skill level, reducing the economy's efficiency.[89]
Note that the hyperinflation in the Weimar republic is not directly blamed
for the Nazi rise – the Inflation in the Weimar Republic occurred primarily
in the period 1921–23, which was contemporary with Hitler's Beer Hall
Putsch of 1923, and is blamed for damaging the credibility of democratic
institutions, but the Nazi party only assumed government in 1933, 10
years after the hyperinflation but in the midst of high unemployment.
BENEFITS OF UNEMPLOYMENT:
Some critics of the "culture of work" such as anarchist Bob Black see
employment as overemphasized culturally in modern countries. Such critics
often propose quitting jobs when possible, working less, reassessing the cost
of living to this end, creation of jobs which are "fun" as opposed to "work,"
and creating cultural norms where work is seen as unhealthy. These people
advocate an "anti-work" ethic for life.
Many countries aid the unemployed through social welfare programs. These
unemployment benefits include unemployment insurance, unemployment
compensation, welfare and subsidies to aid in retraining. The main goal of
these programs is to alleviate short-term hardships and, more importantly, to
allow workers more time to search for a job.
However, the labour market is not 100% efficient: it does not clear, though it
may be more efficient than bureaucracy. Some argue that minimum wages
and union activity keep wages from falling, which means too many people
want to sell their labour at the going price but cannot. This assumes perfect
competition exists in the labour market, specifically that no single entity is
large enough to affect wage levels. Advocates of supply-side policies believe
those policies can solve this by making the labour market more flexible.
These include removing the minimum wage and reducing the power of
unions. Supply-siders argue the reforms increase long-term growth. This
increased supply of goods and services requires more workers, increasing
employment. It is argued that supply-side policies, which include cutting
taxes on businesses and reducing regulation, create jobs and reduce
unemployment. Other supply-side policies include education to make
workers more attractive to employers.
This entry contains the percent of the labor force that is without jobs.
Substantial underemployment might be noted.
ii. Industrial sector is the second largest sector of our economy and
contributes 19% to national income. This sector should employ a large
number of labor. But due to backwardness it is employing a small number of
people. Due to electricity breakdown already established industry is
deteriorating, resulting in the prevailing unemployment ratio.
iii. High cost and low quality are responsible for less demand for our agri and
industrial items. Because of less demand of such kinds of goods both the
domestic and international producers are losing their interest in production.
That’s why people are becoming unemployed.
vi. In Pakistan majority of the businessmen are less educated. They do not
know how to run their businesses properly. So they become bankrupt. This
factor generates unemployment on a massive level.
ix. In Pakistan, tax system is not satisfactory. Ratio of direct taxes is more
than indirect taxes. Tax evasion is common. Due to less income from the
taxes, government cannot start developmental projects. If there is no
investment, then from where public would find jobs. On the other side if
government takes step to increase indirect taxes, it would also affect
investment and ultimately employment level.
xi. Pakistan’s population growth rate is 1.8% which is the highest in the
region. Our resources are limited. Different sectors of economy are unable to
provide jobs to the growing population. So there is unemployment.
xii. Fiscal and monetary policies are also responsible for unemployment. In
view of fiscal policy, Pakistan has less funds to invest in job providing
projects. Every annual budget shows deficit. Through the monetary policy if
the government increases the rate of interest, it discourages the investors
from getting loans.
xiii. Political instability, bad law and order situation, army’s interference,
bomb blasts, terrorism, inconsistent economic policies etc are the factors
which are disturbing domestic and foreign investment. Pakistan investors are
taking away their money to Dubai and other countries of the world.
xiv. Due to 9/11 incident, Gulf war and the baseless allegations of terrorism
xv. Craze for work only in government sector, instead of private sector and
seasonal firms, industries are also responsible for unemployment.
xvi. Since 1947, Pakistani rulers got loans from IMF, World Bank and many
other sources. Such loans were not utilised honestly. Current external debt of
Pakistan is more than 50 billion dollar. Government has to allocate a big
amount for the repayment of loans with interest. So due to less resources for
developmental projects there is unemployment.
For this purpose Economic Revival Package should announce for the revival
of industries sector, to stimulate production and investment.
2) Govt. should seriously try to boost exports through broadening the tax
base and lowering tariffs.
TYPES OF INFLATION:
Demand-pull Inflation:
Cost-push Inflation:
As the name suggests, when the cost of production of goods and services
increases, there is likely to be an increase in the prices of finished goods and
services. For instance, a rise in the wages of laborers is what raises the unit
costs of production and thus raises price. This is less common than demand-
pull inflation. This type of inflation may or may not occur in conjunction with
demand-pull inflation.
Sectoral Inflation:
This is the fourth major type of inflation. The sectoral inflation takes place
when there is an increase in the prices of the goods and services produced
by a certain sector of industries. For instance, an increase in the cost of
crude oil would directly affect all the sectors, which are directly related to
the oil industry. Thus, the ever-increasing price of fuel has become an
important issue related to the economy all over the world. This would lead to
a widespread inflation throughout the economy. If this situation occurs when
there is a recession in the economy, there would be layoffs and it would
adversely affect the work force and the economy in turn
Hyperinflation:
Where 1 is usually the comparison year and CPI1 is usually an index of 100.
Alternately, the CPI can be performed as:
The "updated cost" (i.e the price of an item at a given year, eg: the price of
bread in 1982) is divided by the initial year (the price of bread in 1970), then
multiplied by one hundred.
A Producer Price Index (PPI) measures price change from the perspective of
the seller. It measures average changes in prices received by domestic
producers for their output. The PPI shows trends within the wholesale
markets (the PPI was once called the Wholesale Price Index), manufacturing
industries and commodities markets.
GDP DEFLATOR
GDP deflator (implicit price deflator for GDP) is a measure of the level of
prices of all new, domestically produced, final goods and services in an
the GDP deflator measures the ratio of nominal (or current-price) GDP to the
real (or chain volume) measure of GDP. The formula used to calculate the
deflator is:
Dividing the nominal GDP by the GDP deflator and multiplying it by 100
would then give the figure for real GDP, hence deflating the nominal GDP
into a real measure.
Unlike some price indexes, the GDP deflator is not based on a fixed basket of
goods and services. The basket is allowed to change with people's
consumption and investment patterns. The theory behind this approach is
that the GDP deflator reflects up to date expenditure patterns. For instance,
if the price of chicken increases relative to the price of beef, it is claimed that
people will likely spend more money on beef as a substitute for chicken.
Pakistan publishes four different price indices, namely: the consumer price
index (CPI), the wholesale price index (WPI), the sensitive price index (SPI)
and the GDP deflator. The CPI is the main measure of price changes at the
retail level. It indicates the cost of purchasing a representative fixed basket
of goods and services consumed by private households. In Pakistan, the CPI
covers the retail prices of 374 items in 35 major cities and reflects roughly
the changes in the cost of living of urban areas. The WPI is designed for
those items which are mostly consumable in daily life on the primary and
secondary level; these prices are collected from wholesale markets as well
as from mills at organised wholesale market level. It covers the wholesale
price of 106 commodities prevailing in 18 major cities of Pakistan. The SPI
shows the weekly change of price of 53 selected items of daily use
consumed by those households whose monthly income in the base year
2000-01 ranged from Rs3000 to above Rs12000 per month. The SPI also
informs about the actual position of supply: whether the commodity is
available in market or not. If the commodity is not available, the reason for
that is also recorded. It is based on the prices prevailing in 17 major cities
and is computed for the basket of commodities being consumed by the
households belonging to all income groups combined as in CPI. In most
The inflation rates based on CPI, SPI and WPI for the year 2008-09 increased
by 22.35 per cent, 26.33 per cent and 21.44 per cent respectively over the
corresponding period of 2007-08. It increased by 10.27 per cent, 14.09 per
cent and 13.70 per cent respectively in 2007-08 over the corresponding
period of 2006-07. In 2006-07, the rate of inflation increased by 7.89 per
cent, 11.13 per cent and 6.92 per cent respectively over the same period of
2005-06. An analysis of data for last three years for the same period
indicates that CPI, SPI & WPI were higher as compared to last two years.
The government is cautious about inflation and thus has taken various steps
to release demand pressures on the one hand and enhance supplies of
essential commodities on the other. To ease demand pressures, the State
Bank of Pakistan (SBP) has continuously tightened the monetary policy over
the last three years and more so in the current fiscal year, while to enhance
supplies, the government has relaxed its import regime and allowed imports
of several essential items so that there is a continuous flow in the supply of
those important commodities. In addition, the government increased the
imports of items like wheat, pulse and sugar to complement the efforts of
the private sector. In order to provide relief to the common man, the
government also increased the scale of operations of the Utility Stores
Corporation (USC) which supplies essential commodities such as wheat flour,
sugar, pulses and cooking oil/ ghee at less than the market prices.
(Change of indices in %)
Consumer Price Index (CPI) rose by 11.73 percent in 2009/10, surpassing the
government’s target of 10 percent, mainly because of unprecedented
increase in the electricity tariff.It was, however, below the central bank’s
projection of 12 percent. In the last financial year, CPI had gone up by 21
percent. “CPI could have been contained to a single digit figure if the
electricity charges had not been raised during the year,” said an analyst. The
government had to raise electricity prices because of a commitment with the
International Monetary Fund (IMF).
Food inflation came down to 14.48 percent from over 30 percent in the
previous fiscal.
In June, inflation stood at 12.69 percent, according to figures released by the
Federal Board of Statistics (FBS).
Khurram Schehzad, an analyst at InvesCap, said that the drop in CPI was
mainly due to higher base affect, but reduction in oil prices also had its
impact. He said that inflation would continue to remain in double digit figures
during the current fiscal year because of higher dependence on furnace oil
for power generation. “The high cost of power generation will result in rise in
electricity tariff, which will lead to inflationary pressures.” The non-perishable
food items index rose 13.64 percent and the perishable items index 20.76
percent. House rent index climbed 9.69 percent, while fuel and lighting index
surged 16.36 percent. Transport and communication expenses were higher
by 15.82 percent. Education and health expenses went up by 8.36 percent
and 10.59 percent, respectively. Sensitive Price Index (SPI) and Wholesale
Price Index (WPI) increased by 13.32 percent and 12.63 percent,
respectively.
Soaring food and oil prices drove inflation in Pakistan to its highest level in
over 30 years in May, and analysts expect it to rise further as the
government was expected to slash price subsidies in a budget to be
announced later on Wednesday.
Official data on Wednesday showed the consumer price index rose 2.69 per
cent in May to stand 19.27 per cent higher than a year earlier, after a 17.21
per cent year-on-year rise in April.
“There are two factors driving inflation, high food prices and the second is
the base effect of passing the burden of oil prices,” said Asif Qureshi, head of
research at Invisor Securities Ltd. Prices of food and beverages rose 28.48pc
in May, while house rent and fuel and lighting increased by 12.05 per cent
and 9.50 per cent, respectively.
Inflation is at its highest since 1975 when annual average prices rose 26.83
per cent. Analysts said monthly data started being released in 1991 and
therefore it was difficult to make an exact comparison of inflation figures.
Total budget subsidies on fuel oil, electricity, fertilisers and food items were
due to be reduced to 295.20 billion rupees from 407.48 billion rupees.
EFFECTS OF INFLATION:
When the balance between supply and demand spirals out of control, buyers
will change their spending habits as they meet their purchasing thresholds
and producers will suffer and be forced to cut output. This can be readily tied
to higher unemployment rates. When extremes arise in the supply/demand
structure, imbalances are created.
The point that is being made is that if inflation is not contained and rises at
an unsustainable rate; there will be a stronger impact on the other side.
There is a saying; "the bigger they are, the harder they fall".
The most immediate effects of inflation are the decreased purchasing power
of the rupee and its depreciation. Depreciation is especially hard on retired
people with fixed incomes, as spending power decreases each month. Those
not on fixed incomes are more able to cope, because they can simply
increase their income. Another destabilising effect of inflation is that some
people choose to speculate heavily in an attempt to take advantage of the
higher price level. Because some of the purchases are high-risk investments,
spending is diverted from the normal channels and some structural
unemployment may take place. Finally, inflation alters the distribution of
income. Lenders are generally hurt more than borrowers during long
inflationary periods, which mean that loans made earlier are repaid later in
inflated rupees. Inflation weakens the function of money as storage of value,
because each unit of money is worth less with the passing of time. The
progressive loss of the value of money during a period of inflation makes the
borrowers to be less willing to use the money as standard differed payments
DEMAND-PULL INFLATION:
• The demand-pull theory suggests that inflation occurs when aggregate
demand exceeds aggregate supply; essentially, the number of people
wanting to purchase goods and services outweighs what is available. When
more people want to spend money on something, the price will increase to
account for the greater demand. This scenario is typically associated with a
strong economy and low unemployment, when more people put money into
the economy.
MONETARIST THEORY:
The monetarist theory suggests the money supply determines inflation,
which occurs when the rate of a country's income rises faster than economic
growth. If additional money is pumped into the economy while prices of
goods and services remain the same, it will potentially result in inflation. Top
causes of an increased money supply are banks increasing lending, or
central banks, such as the Federal Reserve, printing more money and buying
government assets.
KEYNESIANS THEORY:
According to Keynesian, inflation can be caused by increase in demand
and/or increase in cost.
Demand-pull inflation is a situation where aggregate demand persistently
exceeds aggregate supply when the economy is near or at full employment.
Aggregate demand could rise because of several reasons. A cut in personal
income tax would increase disposable income and contribute to a rise in
consumer expenditure. A reduction in the interest rate might encourage an
increase in investment as well as lead to greater consumer spending on
consumer durables. A rise in foreigners' income may lead to an increase in
exports of a country. An expansion of government spending financed by
borrowing from the banking system under conditions of full employment is
another cause of inflation.
An increase in demand can be met initially by utilising unemployed resources
if these are available. Supply rises and the increase in demand will have little
or no effect on the general price level at this point. If the total demand for
goods and services continue to escalate, a full employment situation will
eventually be reached and no further increases in output are possible. This
leads to inflationary pressures in the economy.
CONTROLLING INFLATION:
Infect, keeping a strong control over Inflation has turned out to be one of the
primary objectives of the governments of different countries across the
globe. To this effect, efficacious economic policies are being formulated,
which mainly concentrate on the fundamental causes of Inflation in an
economy, and try to improvise methods to keep the inflationary conditions
under control.
For instance, if the primary reason for inflation in a nation is the excessive
demand for goods and services, then the economy policy on the government
level should find out the causes of such unnecessary rise and undertake
measures to decrease the overall level of collective demand .Sometimes, if it
is seen that Cost-Push Inflation is responsible for the rise in the demand for
goods and services, then the cost of production must be checked, to handle
the inflation-related problems.
FISCAL POLICY:
Fiscal policies are effective in increasing the leakage rates from the circular
income flow, thereby rejecting all further additions into this particular flow of
income. This brings about a reduction in the Demand-Pull Inflation, in terms
of increasing unemployment and slackening the economic growths.
Following are a few types of fiscal policies commonly employed:
MONETARY POLICY:
Monetary policies have a great role to play in controlling Inflation. These are
policies which can actually control the rise in demand, by increasing the
rates of interest and reducing the supply of real money. An escalation in the
interest rates brings about a reduction in collective demands, in the following
three ways:
Let us consider the explanation for the trade-off using AD-AS analysis and
the concept of the output gap. In the next diagram, we draw the LRAS
curve as vertical - this makes the assumption that the productive capacity of
an economy in the long run is independent of the price level.
We see an outward shift of the AD curve (for example caused by a large rise
in consumer spending) which takes the equilibrium level of national output to
Y2 beyond potential GDP Yfc. This creates a positive output gap and it is this
that is thought to cause a rise in inflationary pressure as described above.
Excess demand in product markets and factor markets causes a rise in
production costs and this leads to an inward shift in short run aggregate
supply from SRAS1 to SRAS2. The fall in supply takes the economy back
So this might help to explain the Phillips Curve idea. We could equally use a
diagram that uses a non-linear SRAS curve to demonstrate the argument.
The next diagram shows the original short-run Phillips Curve and the trade-
off between unemployment and inflation:
The original Phillips Curve idea was subjected to fierce criticism from the
Monetarist economic school among them the American economist Milton
Normally drawn as vertical – but the long run curve can shift inwards over
time.
2. www.economywatch.com/inflation/causes.html
3. www.economywatch.com/unemployment/measurement.html
4. tutor2u.net/economics/content/topics/.../unemp_policies.html
5. http://tutor2u.net/economics/revision_focus_2004/A2_The_Phillips_Curve.pdf
6. http://tutor2u.net/economics/revision-notes/a2-macro-phillips-curve.html
7. http://www.britannica.com/EBchecked/topic/456596/Phillips-curve
8. http://www.opfblog.com/8447/inflation-and-its-impact-on-the-pakistan-economy
9. http://www.infocheese.com/expectationsaugmentedphillipscurve.html