INFLATION & UNEMPLOYMENT

INFLATION CONCEPTS

DIFFERENT CONCEPTS

ces are raised deliberately in order to encourage economic act

Stagflation is the situation when recession is accompanied b

n is a fall in general level of prices. This is the opposite of inf

TYPES OF INFLATION

TYPES OF INFLATION

CAUSES OF INFLATION

CAUSES OF INFLATION

PRICE INDICES - CPI

OTHER INDICES

Effects of Inflation

Anti-Inflationary Measures

Unemployment

Types of unemployment

Impacts of Unemployment

The Phillips Curve

T h e P h illip s C u rv e . . .
Inflation Rate (percent per year)

6

B

2

A Phillips curve

0

4

Unemployment Rate (percent)

7

Okun’s Law

lls relative to potential GDP , unemployment

rises by

In a recession output falls and unemployment

rises

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