PPT-Inflation and Stagflation

What is inflation Define inflation How does it affect the economy a rise in the general price level It causes rising prices for goods and services It reduces purchasing power for individuals . Inflation. Perfection. Deflation. 1. 2. But first a little behavioral economics. INFLATION OR DEFLATION,. TELL ME IF YOU CAN…. WILL WE BE ZIMBABWE OR. WILL WE BE JAPAN?. INFLATION IS A GENERAL INCREASE IN PRICES OVER TIME, OR A GENERAL DECREASE IN THE VALUE OF MONEY. “I JUST BOUGHT FOUR TIRES. Maritta Paloviita and Matti Viren. Bank of Finland and . University. of Turku . Basic idea. The . basic idea . is . an attempt to see whether the Phillips curve has shifted due to the  EMU (better anchoring of expectations . Taking a look at the “BIGGER” picture.. TOPICS COVERED:. GDP. CPI. Inflation. Stagflation. Aggregate supply. Aggregate demand. Calculations for economic growth, inflation, and unemployment . Structural, cyclical, and frictional unemployment. To understand what . inflation is. To identify how . inflation might . affect businesses. To evaluate how businesses might respond to . inflation. Starter: Find out how much the average salary was in . Swings in the. Economic Pendulum . Instability in the . Growth . of Real . GDP: 1960-2015. Although real GDP in the . United States has . grown at an average rate of approximately 3%, the growth has been characterized by economic ups-and-downs. Economics. Unemployment. Economist’s definition:. Those of working age, who are without work, but who are available for work at current wage rates.. Two . measures . of unemployment.. Claimant . count. Field Study . 2016/2017. OICA presentation to GRRF-84, Geneva. v1. S. ubmitted by the experts of . OICA . Informal . document. . GRRF-84-33. 84th GRRF, 19–22 September 2017. Agenda item . 7(. i. ). Edgenuity Lesson 3.4. Definitions. Inflation. A sustained increase in prices. Goods . and . services get more expensive. Reduces purchasing power for individuals. Causes money to lose value over . time. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 9b – Inflation. TOPICS. Definition of . Inflation?. What is . a Price Index. ?. Calculate the Inflation Rate using an Index. 09. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. The Business Cycle. Alternating increases and decreases in economic activity over time. Phases of the business cycle. Chapter 13. © Dünhaupt, Dullien, Goodwin, Harris, Nelson, Roach, . Torras. Learning goals. After . today‘s. . lecture. , . you. . will . be. . able. . to. :. Explain . the derivation of the Aggregate Demand curve relating inflation and output levels, and how it shifts.. PB 202 . MACROECONOMICS. Continuous Assessment . CA. Total. . Chapter. %. Quiz . Minimum. 3. Chapter. 1, 6, 7. 20. Test . Minimum 1. Chapter 1-4. 20. Tutorial . Minimum 2. Chapter 2&3. 20. Case study . Money and Inflation. Rise in money supply does not equal a rise in Real GDP in the long run, since price level rises as well by the same percentage. Classical Model of Price Level . – Since money supply and price level rise together, the Real Quantity of Money (M/P) stays at the original level.