INFLATION

 A state in which the value of money

is falling.
 Too much money chasing too few
goods.
 Inflation is a sustained rise in price
level due to high rate of expansion
in the aggregate money supply.
Characteristic of inflation
 Inflation is a long term operating dynamic
process.
 It is a process of persistently rising price
level.
 It is a rising trend in price levels and not
a cyclical movement.
 It is a post full employment phenomenon.
 It is characterized by an overflow of
money and credit.
Causes of inflation
 Change in money supply
 Disposable income
 Business and consumer expenditure
 Foreign trade
 Internationally led inflation
UNEMPLOYMENT
 Unemployment is defined as a term
when a person who is a capable of
working both physically and
mentally at the existing wage rate
does not get prospective job.
Rate of Wage increase Phillips Curve

Phillips Curve

Rate of unemployment