The Phillips Curve and Its Impact on Inflation and Unemployment | California State University, Northridge - Edubirdie

University:
California State University, Northridge
Course:
ECON 160 | Principles of Microeconomics
Academic year:

2023
Views:

487

Pages:

2
Author:

Mahmoud M.

Microeconomics notes For a transaction with money: ● M x V = P x Q so; - M Income - V Speed of money (how much money changes in a year) - P Average price - consumption price - Q total real output - P x Q nominal GDP quantity theoretical amount of money. MxD=PxQ Phillips Curve, - Inverse relationship between unemployment and inflation Demand drives inflation - Increase in demand causes average price to rise Price rise in price - Decrease in 4 causes average price to rise ● 4 4 increase of goods not suitable for Phillips curve ● Made of shock goods - reduce the push of goods to increase output price ● May cause stagflation - Unemployment and inflation combined Total consumption Actual consumption GDP: - Goods for base year and the total price of services is - The company is ready to be built in a jiffy. Total Supply: The Relationship between Real GDP Amounts and Price Levels. Long-Run Total Supply: - Relationship Between Real GDP Model and Price Level - Price Level Controls Total Employment as Balance of Payments Changes. - Potential GDP is vertical as it is independent of price. Short-Run Total Supply: - The relationship between real GDP and price level. - Expenses stay the same when wages change. - Real GDP correlates with Capital GDP - Economy reaches full employment. Change in total: ● Potential GDP growth, LRAS and SRAS growth. Amount of Fully Employed Labor: ● More Fully-Employed Labor, More GDP Amount of Capital: - More Capital, More Product - Capital including human capital

Related Documents

The Phillips Curve and Its Impact on Inflation and Unemployment

The Phillips Curve and Its Impact on Inflation and Unemployment - Page 1

The Phillips Curve and Its Impact on Inflation and Unemployment - Page 2

of 2

Recommended Documents

Average Cost in Production Theory

Average Cost in Production Theory

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Break-Even Point

Break-Even Point

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Decreasing Returns To Scale DRTS On The Production Curve

Decreasing Returns To Scale DRTS On The Production Curve

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Economies of Scale in Production Theory

Economies of Scale in Production Theory

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Homogeneous Products in Perfect Competition Markets

Homogeneous Products in Perfect Competition Markets

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Perfect Competition Market

Perfect Competition Market

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

The Solow-Swan Model of Economic Growth

The Solow-Swan Model of Economic Growth

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

New Documents from this Course

Apply Principles of Consumer/Producer Surplus

Apply Principles of Consumer/Producer Surplus

California State University, Northridge ECON 160 | Principles of Microeconomics

Study Guide

Producer Behavior in Microeconomics

Producer Behavior in Microeconomics

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Flexibility in Monetary Viewpoints: Value Awareness

Flexibility in Monetary Viewpoints: Value Awareness

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Investment In Technology

Investment In Technology

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Investment In Infrastructure

Investment In Infrastructure

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Investment In Health

Investment In Health

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Investment In Energy

Investment In Energy

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Labor Shortage, Unemployment Types, Natural Unemployment Rate, and Inflation

Labor Shortage, Unemployment Types, Natural Unemployment Rate, and Inflation

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Microeconomics: Economic Growth, Employment, Capital, and Productivity

Microeconomics: Economic Growth, Employment, Capital, and Productivity

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Understanding GDP, Macroeconomics, and Economic Indicators for Personal Success

Understanding GDP, Macroeconomics, and Economic Indicators for Personal Success

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

The Dynamics of Competitive Markets: Equilibrium, Profit, and Efficiency

The Dynamics of Competitive Markets: Equilibrium, Profit, and Efficiency

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note

Determinants of Supply in Competitive Markets: Short-Run Dynamics and Efficiency

Determinants of Supply in Competitive Markets: Short-Run Dynamics and Efficiency

California State University, Northridge ECON 160 | Principles of Microeconomics

Lecture Note