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2.3 Inflation/Unemployment and Economic Policies Terms
Civilian Labour Force
Full employment
Under employment/ disguised unemployment
Jobless
Hidden economy
Equilibrium Unemployment
Structural/Technological
Frictional (search)
Seasonal
Disequilibrium Unemployment
Cyclical/Demand-deficient
Real wage*
Natural rate of unemployment
Geographical immobility
Redundant skills
Costs of unemployment
Voluntary vs Involuntary unemployment
Inflation
Cost push vs demand pull
Creeping inflation
Hyperinflation
Stagflation
Deflation
Purchasing Power
Quantity Theory of Money
Velocity of Circulation
MV = PY
Wage push
Profit push
Import price push
Tax push
Costs of Inflation
Costs of Deflation
Inflationary spiral
Monetary Policy Tools
Inflation vs Unemployment Trade offs
Equity vs Equality
Quintiles and Deciles
Human capital
Productive efficiency
The Gini Coefficient
Absolute poverty v relative poverty
Direct vs indirect tax
Types of taxes
Progressive
Proportional
Regressive
Transfer payment
DIAGRAMS
Labour Market Diagram (Wages v Employees) Natural (Equilibrium Unemploy) Diagr
Real Wage Unemployment Diagram
Demand Deficient (Cyclical) Unemploym
Demand pull inflation Diagram
Cost push inflation diagram
Lorenz Curve
Various Keynesian and Monetarist impacts
OUTLINE
I. Unemployment
A. Definitions & Assumptions
B. Consequences
C. Types of unemployment
D. Costs of unemployment
E. Strategies to combat unemployment
II. Inflation
A. Definitions & Measurement
1. Cost push vs demand pull
a. types of cost push
2. CPI
B. Deflation Good & Bad
C. Consequences of Inflation and Deflation
D. Costs of inflation
E. Strategies to combat inflation
III. Economic Growth
A. Definitions
B. Types of growth
C. Consequences and assumptions
IV. Redistribution of Income and Equity
A. What is equity?
B. Current situation
Lorenz Curve
C. Methods
Direct v Indirect taxation
Provision of Services
Transfer payments