macroeconomics
DESCRIPTION
all about macroeconomics .:)TRANSCRIPT
GROUP ONE
ECONOMIC GROWTH
An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.
IMPORTANCE OF
ECONOMIC GROWTH
Economic growth is important because it provides a foundation for the future of society. Economic growth can contribute to advancements in all fields, creating beneficial outcomes and solutions to many economic problems.
FULL EMPLOYMENT
A situation in which all available labor resources are being used in the most economically efficient way. Full employment embodies the highest amount of skilled and unskilled labor that could be employed within an economy at any given time. The remaining unemployment is frictional.
PRICE STABILITY
A situation in which prices in an economy don't change much over time. Price stability would mean that an economy would not experience inflation or deflation. It is not common for an economy to have price stability.
FOUR PHASES OF
BUSINESS CYCLE
DIAGRAM OF FOUR PHASES OF BUSINESS CYCLE
The business cycle starts from a trough (lower point) and passes through a recovery phase followed by a period of expansion (upper turning point) and prosperity. After the peak point is reached there is a declining phase of recession followed by a depression. Again the business cycle continues similarly with ups and downs.
PROSPERITY PHASE
EXPANSION OR BOOM OR UPSWING OF ECONOMY.
When there is an expansion of output, income, employment, prices and profits, there is also a rise in the standard of living. This period is termed as Prosperity phase.
The features of prosperity are :
1.High level of output and trade.
2.High level of effective demand.
3.High level of income and employment.
4.Rising interest rates.
5.Inflation.
6.Large expansion of bank credit
7.Overall business optimism.
8.A high level of MEC (Marginal efficiency of capital) and investment.Due to full employment of resources, the level of production is Maximum and there is a rise in GNP (Gross National Product). Due to a high level of economic, it causes a rise in prices and profits. There is an upswing in the economic activity and economy reaches its Peak. This is also called as a Boom Period.
RECESSION PHASE
FROM PROSPERITY TO RECESSION (UPPER TURNING
POINT).
The turning point from prosperity to depression is termed as Recession Phase. During a recession period, the economic activities slow down. When demand starts falling, the overproduction and future investment plans are also given up. There is a steady decline in the output, income, employment, prices and profits. The businessmen lose confidence and become pessimistic (Negative). It reduces investment. The banks and the people try to get greater liquidity, so credit also contracts. Expansion of business stops, stock market falls. Orders are cancelled and people start losing their jobs. The increase in unemployment causes a sharp decline in income and aggregate demand. Generally, recession lasts for a short period
DEPRESSION PHASE
CONTRACTION OR DOWNSWING OF ECONOMY.
When there is a continuous decrease of output, income, employment, prices and profits, there is a fall in the standard of living and depression sets in.
The features of depression are :
1.Fall in volume of output and trade.2.Fall in income and rise in unemployment.3.Decline in consumption and demand.4.Fall in interest rate.5.Deflation.6.Contraction of bank credit.7.Overall business pessimism.8.Fall in MEC (Marginal efficiency of capital) and investment.
RECOVERY PHASE
FROM DEPRESSION TO PROSPERITY (LOWER
TURNING POINT).
The turning point from depression to expansion is termed as Recovery or Revival Phase.During the period of revival or recovery, there are expansions and rise in economic activities. When demand starts rising, production increases and this causes an increase in investment. There is a steady rise in output, income, employment, prices and profits. The businessmen gain confidence and become optimistic (Positive). This increases investments. The stimulation of investment brings about the revival or recovery of the economy. The banks expand credit, business expansion takes place and stock markets are activated. There is an increase in employment, production, income and aggregate demand, prices and profits start rising, and business expands. Revival slowly emerges into prosperity, and the business cycle is repeated.Thus we see that, during the expansionary or prosperity phase, there is inflation and during the contraction or depression phase, there is a deflation.
POPULATION
- is a summation of all the organisms of the same group or species, who live in the same geographical area, and have the capability of interbreeding.
ADULT POPULATION
-is the population 15 years old and over, in one country
LABOR FORCE
- is the actual number of people available for work. The labor force of a country includes both, the employed and the unemployed.
LABOR FORCE
PARTICIPATION RATE
-is the ratio between the labor force and the overall size of their cohort (national population of the same age range).
UNEMPLOYMENT(JOBLESSNESS)
- occurs when people are without work and actively seeking work.
UNEMPLOYMENT RATE
- measures the percentage of employable people in a country's workforce who are over the age of 16 and who have either lost their jobs or have unsuccessfully sought jobs in the last month and are still actively seeking work.
THE FORMULA FOR
UNEMPLOYMENT RATE IS:
UNEMPLOYMENT RATE = NUMBER OF
UNEMPLOYED / TOTAL LABOR FORCE
TYPES OF
UNEMPLOYMENT
FRICTIONAL
UNEMPLOYMENT
-is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search unemployment and can be voluntary based on the circumstances of the unemployed individual
STRUCTURAL
UNEMPLOYMENT
-is a form of unemployment where, at a given wage, the quantity of labor supplied exceeds the quantity of labor demanded, because there is a fundamental mismatch between the number of people who want to work and the number of jobs that are available. The unemployed workers may lack the skills needed for the jobs, or they may not live in the part of the country or world where the jobs are available
- Structural unemployment is one of the five major categories of unemployment distinguished by economists. Structural unemployment is generally considered to be one of the "permanent" types of unemployment, where improvement if possible, will only occur in the long run.
SEASONAL
UNEMPLOYMENT
-An elevated level of unemployment that is expected to occur at certain parts of the year. For instance, amusement parks may experience seasonal unemployment during the winter months because less people will visit the parks during this time.
INFLATION
-is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. -Consequently, inflation reflects a reduction in the purchasing per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.
DEMAND-PULL INFLATION
-is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods". More accurately, it should be described as involving "too much money spent chasing too few goods", since only money that is spent on goods and services can cause inflation. This would not be expected to happen, unless the economy is already at a full employment level
COST-PUSH INFLATION
- is a type of inflation caused by substantial increases in the cost of important goods or services where no suitable alternative is available
PRICING POWER INFLATION
Pricing power inflation is more often called as administered price inflation. This type of inflation occurs when the businesses decide to increase their prices to increase their profit margins. Pricing power inflation does not occur at the time of financial crises and economic depression, or when there is a down turn in the economy. This type of inflation is also called as oligopolistic inflation because oligopolies have the power of to set their own prices.
PRESENTED BY:
NAME: Grande, Mack AllenNICKNAME: Mack , Allen AGE: 16GENDER: MaleADDRESS: 82v Dona Juana Street Erod, Quezon CityBIRTHDAY: May 16 1997SCHOOL: Technological Institute of the PhilippinesPROGRAM/YEAR: BSA/ 1st yearCONTACT #: 09217752424EMAIL ADD: [email protected] NAME: Rudy Grande- Merlinda Grande-
NAME: Gallosa, Janice S.NICKNAME: DaphneAGE: 16GENDER: FemaleADDRESS: Blk 1 lot 41 Pasacola Dulo Novaliches Quezon CityBIRTHDAY: July 01 1997SCHOOL: Technological Institute of the PhilippinesPROGRAM/YEAR: BSA/ 1st yearCONTACT #: 09075060516EMAIL ADD: [email protected] NAME: Winnie Fredo Gallosa Irene Gallosa
NAME: Larga, Annielou E.NICKNAME: annieAGE: 17 GENDER: FemaleADDRESS: Blk19 lot1 phs3 sta. Barbara villas I Silangan, San Mateo, RizalBIRTHDAY: August 26 1996SCHOOL: Technological Institute of the PhilippinesPROGRAM/YEAR: BSA/ 1st yearCONTACT #: 09491440330EMAIL ADD: [email protected] NAME: Joven Larga-police Marilou Larga-businesswoman
NAME: Halasan, Camille R.NICKNAME: CamsAGE: 16GENDER: FemaleADDRESS: 6M Gregorio St. Canumay West, Valenzuela City BIRTHDAY: Febuary 19, 1997SCHOOL: Technological Institute of the PhilippinesPROGRAM/YEAR: BSA/1st yearCONTACT #:09079683578EMAIL ADD: [email protected] NAME: Mercedita Halasan – Housewife Rolando Halasan – Tricycle Driver
NAME: Kitongan, Daphne Jan NICKNAME: DeejAGE: 16GENDER: FemaleADDRESS: #8 Potsdam st. aurora blvd. Cubao Q.C.BIRTHDAY: January 11,1997SCHOOL: Technological Instutute of the PhilippinesPROGRAM/YEAR: BSA/1st yearCONTACT #: 09354492061EMAIL ADD: [email protected] NAME: Robert Kitongan – Contractor Caroline Kitongan – self-employed
NAME: Guevarra, Lawrence C.NICKNAME: OwenAGE: 17GENDER: MaleADDRESS: 87 Villaliuz St. Brgy. Kalayaan Angono RizalBIRTHDAY: July 14, 1996SCHOOL: Technological Institute of the PhilippinesPROGRAM/YEAR: BSA/1st yearCONTACT #: 09302626565EMAIL ADD: [email protected] NAME: Reynaldo Guevarra – Bakery Owner Nely Guevarra - Housewife
SPECIAL THANKS TO:
(FOR POWER POINT)
