Demand-Pull Inflation/Recession

 

 

 

 

 

 

 

 

 

 

Demand-Pull Business Cycle

 

 

 

 

 

 

 

 

 

 

Stagflation: Supply Side Shocks

 

 

 

 

 

 

 

 

 

Supply-Side Cycle

 

 

 

 

 

 

 

 

 

Demand Pull or Cost Push

DEMAND-side OR supply-side ?

 

 

 

 

 

 

 

 

Demand-Pull Cycles and Supply-side Shocks

 

 

 

 

 

 

 

 

 

 

 

 

FOUR MACRO POLICY GOALS
1. FULL EMPLOYMENT (4%-5% UNEMPLOYMENT)
2. STABLE PRICES (2%-3% INFLATION)
3. STEADY ECONOMIC GROWTH (3%-4%)
4. TRADE BALANCE (EXPORTS > IMPORTS)

 

 

 

 

 

 

 

 

 

 

Why the Unemployment Rate is Never Zero
 
   
Natural Unemployment
  1. Frictional Unemployment
  2. Structural Unemployment
       
3. Cyclical Unemployment

 

 

 

 

 

 

 

 

Phillips Curve

 

 

 

 

 

 

 

 

 

Phillips Family

 

 

 

 

 

 

 

Phillips Reflection?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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