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)

B
6

A
2

Phillips curve

0 4 7
Unemployment Rate (percent)
 Okun’s Law

lls relative to potential GDP , unemployment rises by

In a recession output falls and unemployment

rises