Scribd Logo
Unggah

Selamat datang di Scribd!

  • Inflation and Unemplyment

    Diunggah oleh

    Hawary Saadon
    10 tayangan19 halaman
    Inflation is defined as a continuous rise in the general price level of goods and services in an economy. It can be caused by demand-pull factors, where aggregate demand exceeds supply, or cost-push factors, where production costs rise. Common causes of cost-push inflation include increases in wages, profits, import prices, and commodity prices. Inflation affects different parts of the economy like savings, production, balance of trade, income distribution, and unemployment. Governments use monetary policy, fiscal policy, and direct control measures to combat inflation.

    Deskripsi Asli:

    for KPTM students

    Hak Cipta

    © © All Rights Reserved

    Format Tersedia

    PPTX, PDF, TXT atau baca online dari Scribd

    Apakah menurut Anda dokumen ini bermanfaat?

    Apakah konten ini tidak pantas?

    Laporkan Dokumen Ini
    Inflation is defined as a continuous rise in the general price level of goods and services in an economy. It can be caused by demand-pull factors, where aggregate demand exceeds supply, or cost-push factors, where production costs rise. Common causes of cost-push inflation include increases in wages, profits, import prices, and commodity prices. Inflation affects different parts of the economy like savings, production, balance of trade, income distribution, and unemployment. Governments use monetary policy, fiscal policy, and direct control measures to combat inflation.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    10 tayangan19 halaman

    Inflation and Unemplyment

    Diunggah oleh

    Hawary Saadon
    Inflation is defined as a continuous rise in the general price level of goods and services in an economy. It can be caused by demand-pull factors, where aggregate demand exceeds supply, or cost-push factors, where production costs rise. Common causes of cost-push inflation include increases in wages, profits, import prices, and commodity prices. Inflation affects different parts of the economy like savings, production, balance of trade, income distribution, and unemployment. Governments use monetary policy, fiscal policy, and direct control measures to combat inflation.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 19

    PREPARED BY:

    MOHD HAWARY BIN SAADON


    Too much money chasing too few goods
    Defined as continuous increase in the general
    price level of goods and services in the
    economy.
    Consumer Price Index is index that measures
    changes in the average price of consumer
    goods and services.
    Inflation Rate = CPI this year CPI previous year x 100
    CPI previous year
    Demand-Pull Inflation
    Cost- Push Inflation
    Aggregate Demand > Aggregate Supply
    Associated with booming economy or economy
    which near the peaks of its business cycle.
    caused by an excess in spending. When demand
    exceeds the output capacity supplied by the
    economy, there will be a pressure on the price
    level. When the economy is near full employment
    level, an increase in aggregate demand will cause
    an increase in general price level. The excess
    spending can be because of too much money
    supplied in the economy through the government
    budget deficit.

    An increase in the general price level
    associated with an increase in the cost
    production.
    Inflation accours due to increase in the cost
    or supply prices of goods caused by increase
    in cost of inputs.

    Increase in wage level that lead to increase
    cost of production
    Wage-push
    Inflation
    When certain producers or monopolist stock
    up on goods and create an artificial shortage
    Profit-push
    Inflation
    When the prices of imported raw materials or
    finished goods increase

    Import-push
    Inflation
    Changes the pattern of distribution of income & wealth in
    society
    Distribution of
    Income
    The value of fixed deposit, money will depreciate.
    Purchasing power measure by quantity of goods
    Savings
    General level of prices rises & producer make higher profit by
    holding old stocks
    Lead to increased in production & reduce unemployment.
    Production
    Balance of Trade Face deficit balance of trade since import >
    export
    Monetary Policy
    Fiscal Policy
    Direct Control Measures
    Consists of controlling the supply money by
    central bank to use different monetary
    instrument.
    1. Open market operations- selling securities /
    short term bonds
    2. Raising the reserves requirement
    3. Raising the discount rate / bank rate
    4. Raising the interest rate
    5. Selective credit control policy
    Decrease in government spending & increase
    in the governments total tax revenue will
    produce a surplus budget.
    1. Increase in taxes
    2. Decrease in government expenditure
    1. Price control & rationing
    2. Anti-hoarding campaign
    3. Compulsory savings
    Labour force participants being available &
    willing to work but unabale to find jobs
    Unemployment rate= percentage of the
    labour force that is unemployed and actively
    seeking employment.
    People are in between job/ entering or
    reentering the labour force
    Frictional
    Unemployment
    Lack of jobs, resulting from a downswing
    in a business cycle or a recession
    Cyclical
    Unemployment
    Arises due to structural changes in the
    economy of country.
    Structural
    Unemployment
    Seasonal
    Unemployment
    Arises due to seasonal variation
    in the activities of particular
    industries
    Loss of income & self-respect
    Loss of job skills
    Social & political problems
    Effects on
    individual &
    society
    GNP to measure the cost of
    unemployment.
    Loss to government revenue
    obtained through personal taxes
    Effects on
    the Economy
    Monetary Policy
    Fiscal Policy
    Direct Control Measures
    1. Open market operations Purchase of
    securities or short term bond
    2. Lowering the reserve requirement
    3. Lowering the discount rate
    4. Lowering the interest rate
    1. Decrease in taxes
    2. Increase in government expenditure
    1. Training & technical education
    2. Development of new land
    3. Job creation in various sectors of an
    economy

    Anda mungkin juga menyukai