)
( ①
Real income =
Nominal income inflation
Amin
-
AS ECONOMICS -
Ars ?
BUSINESS CYCLE ↳ science that studies human behaviour
as a
relationship between Index Numbing
CALCULATION
gpgp TYPES ends and seance
means .
^ COST PUSH DEMAND PULL
Raw Number <
GDPnew GD Polo ACTUAL growth ✗ too
-
B°
-
✗ 100 Base year
by Top cost raw number
caused
by top
rate
caused AD
GDP old T C
Trend Of FOP ) .
( """ "☐ ^ Inflation Rate :
Wages (land ) ?
> )
recess,=oµ Growth rate >
eg . Rent (land) CPI new -
CPI-c.io
✗ no ,
Interest
COMO MI ( Grow -7
Rate ( capital ) and CPI old
At Ign
Time tax ( firms)
- r
>
Price of materials and oil > Measured
raw
by
nf
.
( DEMAND SIDE) the CPIH
obj >
High stable economic growth
>
Output ✗ """" "" " (average typical
goods
"
basket of
>
Sustained increase in the average level of prices and services)
t gg.gg#yygg
>
An increase in the
country's productive over a period of time
potential → Shown by the increase in REAL GDP →
Target =
2010-1-1 % Menu costs -
constantly
]
>
changing prices
tmall.tn d consumerist Deflation can increase
poverty
:
7 7
Reduce cyclical society ↳ To
improve
real value of debt DISADVANTAGES
' ^
are standards
>
T funds for infrastructure Demand pull inflation of
lining / ADVANTAGES
unemployment economic °
ADVANTAGES projects r welfare of its inhabitants
& investment Reduction in REAL INCOME
9 tax DISADVANTAGES Deflation is ↳
revenue harmful L
uncertainty for
for
Riskof environ
u
R income :P
living >
government can create more
cordate
.
- s can cause
delayed purchases expected profits >
Nominal -
Inflation
standards inequality in the
damage ↳
causing output gap =L appetite for
-
u can a ve .
9 profits =P investment distribution of T stress 13 investment
working
}
.
✓N É M µ
( Accelerator effect) income
longer hours Overexploitation
>
M&N
①
µ
resources
L of
CURRENT ACCOUNT ON THE
Opportunity cost of eg deforestation Unevmployment Rate
}A/AN Cl Of
.
increased capital investment
3
.
MlhkS unemployment ✗ too
>
Trade : No of people
ay
.
X - M DEFICIT labour force
The
→ Good position CA Bop ✗ > M SURPLUS
>
amount of people who are
willing 31 able to work but
find
on
cannot job
.
a .
> COMPRISES OF
TYPES
:
> TRADE goods / services
by deficiencies
in
caused CLAIMANT COUNT LFS
>
Cyclical
-
> Investment INCOME Income
from assets owned overseas
gap)
-
in demand
C- Amrit JSA Conducted Internal n
output claiming
>
of ppl by
-
ve
-
-
. .
-
DETERMINANTS OF IMPORTS $ EXPORTS INTEREST RATE minus income
generated by foreigners jobs ( unemployed Organisation
-
-
> frictional = in between can under represent the labour .
&
>
Structural mismatch of skills not
everyone can claim , ( Overestimates uhemployeo
{ }
as
-
> :
SPICED IRT =
ERT → Exports to →
Imports T hot out
=
to other c. also considered
Sauers
structure of time
IR ✗ ER money caused by changes in the not
everyone will claim 31 can be
part -
is
WPIDEL IRA :
ER to →
Exports T →
Imports & for T ER demand for
)
fraud )
-
be errors
sampling
so
- economies subject to .
t can
=L
geographically
currency 13 ER
→
Geograpical inability to move
-
>
TIVFLATION INCOME (only affects imports) →
Seasonal -
no
jobs due to the season .
→
Inf .
9 =
Exports d →
Imports 't ↳ Tine .
= T
imports Hysteresis effect stress B health
Exports Downward pressure for being
4 → skills
Inf Imports & Wine =L imports ↳ > problems of
& deterioration of
=
.
.
ways & cost of production
=
>
T pool of unemployed
Disadvantages
^
Evaluation :
Depends the size of the current account emplo
on for
deficit as a 010 of GDP ADVANTAGES choose fro social problems (
>
eg . a
deficit > solo would be cause for a
greater ✓ ally youth unempj Pogor borrowing t
concern . R
cyclical unemployment =L inflation ↳ can have 9 crime to tax revenue t spend more
+
vandalism .
on
unemployment benefits
( ①
Real income =
Nominal income inflation
Amin
-
AS ECONOMICS -
Ars ?
BUSINESS CYCLE ↳ science that studies human behaviour
as a
relationship between Index Numbing
CALCULATION
gpgp TYPES ends and seance
means .
^ COST PUSH DEMAND PULL
Raw Number <
GDPnew GD Polo ACTUAL growth ✗ too
-
B°
-
✗ 100 Base year
by Top cost raw number
caused
by top
rate
caused AD
GDP old T C
Trend Of FOP ) .
( """ "☐ ^ Inflation Rate :
Wages (land ) ?
> )
recess,=oµ Growth rate >
eg . Rent (land) CPI new -
CPI-c.io
✗ no ,
Interest
COMO MI ( Grow -7
Rate ( capital ) and CPI old
At Ign
Time tax ( firms)
- r
>
Price of materials and oil > Measured
raw
by
nf
.
( DEMAND SIDE) the CPIH
obj >
High stable economic growth
>
Output ✗ """" "" " (average typical
goods
"
basket of
>
Sustained increase in the average level of prices and services)
t gg.gg#yygg
>
An increase in the
country's productive over a period of time
potential → Shown by the increase in REAL GDP →
Target =
2010-1-1 % Menu costs -
constantly
]
>
changing prices
tmall.tn d consumerist Deflation can increase
poverty
:
7 7
Reduce cyclical society ↳ To
improve
real value of debt DISADVANTAGES
' ^
are standards
>
T funds for infrastructure Demand pull inflation of
lining / ADVANTAGES
unemployment economic °
ADVANTAGES projects r welfare of its inhabitants
& investment Reduction in REAL INCOME
9 tax DISADVANTAGES Deflation is ↳
revenue harmful L
uncertainty for
for
Riskof environ
u
R income :P
living >
government can create more
cordate
.
- s can cause
delayed purchases expected profits >
Nominal -
Inflation
standards inequality in the
damage ↳
causing output gap =L appetite for
-
u can a ve .
9 profits =P investment distribution of T stress 13 investment
working
}
.
✓N É M µ
( Accelerator effect) income
longer hours Overexploitation
>
M&N
①
µ
resources
L of
CURRENT ACCOUNT ON THE
Opportunity cost of eg deforestation Unevmployment Rate
}A/AN Cl Of
.
increased capital investment
3
.
MlhkS unemployment ✗ too
>
Trade : No of people
ay
.
X - M DEFICIT labour force
The
→ Good position CA Bop ✗ > M SURPLUS
>
amount of people who are
willing 31 able to work but
find
on
cannot job
.
a .
> COMPRISES OF
TYPES
:
> TRADE goods / services
by deficiencies
in
caused CLAIMANT COUNT LFS
>
Cyclical
-
> Investment INCOME Income
from assets owned overseas
gap)
-
in demand
C- Amrit JSA Conducted Internal n
output claiming
>
of ppl by
-
ve
-
-
. .
-
DETERMINANTS OF IMPORTS $ EXPORTS INTEREST RATE minus income
generated by foreigners jobs ( unemployed Organisation
-
-
> frictional = in between can under represent the labour .
&
>
Structural mismatch of skills not
everyone can claim , ( Overestimates uhemployeo
{ }
as
-
> :
SPICED IRT =
ERT → Exports to →
Imports T hot out
=
to other c. also considered
Sauers
structure of time
IR ✗ ER money caused by changes in the not
everyone will claim 31 can be
part -
is
WPIDEL IRA :
ER to →
Exports T →
Imports & for T ER demand for
)
fraud )
-
be errors
sampling
so
- economies subject to .
t can
=L
geographically
currency 13 ER
→
Geograpical inability to move
-
>
TIVFLATION INCOME (only affects imports) →
Seasonal -
no
jobs due to the season .
→
Inf .
9 =
Exports d →
Imports 't ↳ Tine .
= T
imports Hysteresis effect stress B health
Exports Downward pressure for being
4 → skills
Inf Imports & Wine =L imports ↳ > problems of
& deterioration of
=
.
.
ways & cost of production
=
>
T pool of unemployed
Disadvantages
^
Evaluation :
Depends the size of the current account emplo
on for
deficit as a 010 of GDP ADVANTAGES choose fro social problems (
>
eg . a
deficit > solo would be cause for a
greater ✓ ally youth unempj Pogor borrowing t
concern . R
cyclical unemployment =L inflation ↳ can have 9 crime to tax revenue t spend more
+
vandalism .
on
unemployment benefits
