Document Code: CAS-F-SOLMT

MANUEL S. ENVERGA UNIVERSITY FOUNDATION

Lucena City Document Title: Synchronous Online Learning Module
An Autonomous University Template
Page No.: Page 1 of 5
COLLEGE OF ___________________ Revision No.: 1
Effectivity Date: August 2020
QUALITY FORM Prepared by: Dean
Reviewed by: QMR
Approved by: President

Module 2
Title of the Module AE 108 Economic Development

Module Objective/s 1) Identify the modern approach of Microeconomics and

Macroeconomics.

2) Know the importance of Macroeconomic Policy.

3) Determine how to measure national income and the rates of

unemployment and inflation.

Learning Outcome/s 1) Explain the difference between Microeconomics and

Macroeconomics.

2) Discuss the types of Microeconomics to pursue its goals.

3) Analyze the effect of inflation to unemployment.

Structure - Definition of Macroeconomics and Microeconomics

- Types of Macroeconomics

- Monetary Policy and Fiscal Policy

- Definition and Kinds of Inflation

- Losers and Gainers of Inflation

-Reasons of Unemployment in the Philippines

Exercises/Activities Individual Work

ESSAY:

1) Is inflation bad? Why or why not?

2) What is the effect of Monetary Policy tools to our economy? Cite your
examples.

3) Among the reasons of unemployment in the Philippines, which one is the

worst? Defend your answer.

Assessment 75% passing grade ( Rubrics Aided )

 Document Code: CAS-F-SOLMT
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Synchronous Online Learning Module
An Autonomous University Template
Page No.: Page 2 of 5
COLLEGE OF ___________________ Revision No.: 1
Effectivity Date: August 2020
QUALITY FORM Prepared by: Dean
Reviewed by: QMR
Approved by: President

Presentation of reactions or opinions - 20%

Illustration of Example - 15%

Originality - 15%

Time needed to complete 45 minutes

Note: Recommended maximum length for a piece of interactive online content is 45 minutes. The length
of the interactive online content can be longer depending on the student cohort. Even with motivated
post-graduate students a single module/piece of interactive content should not take more than 45
minutes to complete.

1) Is inflation bad? Why or why not?


MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City
An Autonomous University
COLLEGE OF ___________________
QUALITY FORM
Document Code: CAS-F-SOLMT
Document Title: Synchronous Online Learning Module
Template
Page No.: Page 3 of 5
Revision No.: 1
Effectivity Date: August 2020
Prepared by: Dean
Reviewed by: QMR
Approved by: President

At first, I believed that inflation is entirely bad because it implies the

increase of market prices and decrease of the purchasing power of a certain currency
like Peso in the Philippines, as per discussion in this class. Inflation is the root of
troubles in the economic schemes in four interconnected ways. First, inflation erodes
the purchasing power of money which is the so-called "inflation tax." Anticipation of
further erosion lessens people's desire to hold money and other assets or investments
denominated in any currency. Second, the inflation rate over any time interval often
surprises consumers and buyers, so that individuals and enterprises end up with
diverse aggregates of purchasing power than what they have initially planned. Third, at
any moment the inflation ratio over any future time interval is indeterminate. This affects
economic performance, mostly for the worse. Fourth, inflation happens unevenly over
an economy's price array. In a market economy, prices are expected in any case to
move at different rates, that is to fluctuate, but inflation actually heightens the
differences among price movements.

With further research and browsing on the internet, I found out that
inflation can somehow be a sign of a healthy economy. If the inflation rate maintains
deteriorating, then over a constant period, you’re actually looking at less stability, and
other possible risks. If the inflation rate is going up, this means you can buy less with
your money. You may spot prices increasing on things like electricity and gasoline.

It can actually lead industries and commerce to either cut their prices
further, decreasing company proceeds – or force their hand on job losses. If this goes
on for a while, it could terminate economic development and employment. That’s why
having a little bit of inflation could somehow be an indication that business enterprises
and employment rates are magnifying.

MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City
An Autonomous University
COLLEGE OF ___________________
QUALITY FORM
Document Code: CAS-F-SOLMT
Document Title: Synchronous Online Learning Module
Template
Page No.: Page 4 of 5
Revision No.: 1
Effectivity Date: August 2020
Prepared by: Dean
Reviewed by: QMR
Approved by: President

2) What is the effect of Monetary Policy tools to our economy? Cite your
examples.

Monetary policies are the measures employed by governments to

influence economic activity, specifically by manipulating the supplies of money and
credit and by changing interest rates to maintain the monetary stability of a nation, to
preserve the international value of the peso and the convertibility of peso into other
freely convertible currencies, and to promote a rising level of production, employment,
and real income.

Some effects of Monetary Policy in a certain country, like the Philippines

can be, as follows:
 Preserved full employment
 High rates of economic growth
 Stabilized market prices and wages

For instance, monetary policy decisions affect expectations for the future
performance of the economy and, in particular, of prices. Monetary policies are actions
taken to affect the economy of a country. The key steps used by a central bank to
expand the economy include:

 Decreasing the discount rate

An increase in the discount rate reduces the amount of lending made by banks. Thus, it
is considerable to reduce the discount rate to maintain the flow of service, performance
and production.

 Purchasing government securities

This action generates money in the form of additional deposits from the sale of the
securities by commercial banks. By accumulating to the cash reserves of the
commercial banks, then, companies enable banks to increase their lending capacity.
Therefore, the additional demand for government bonds bids up their price and thus
reduces their yield.

 Reducing the reserve ratio

This reserve requirement acts as a brake on the lending operations of the commercial
banks. By reducing this reserve-ratio requirement, entities can influence the amount of
money available for lending and money supply.

MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City
An Autonomous University
COLLEGE OF ___________________
QUALITY FORM
Document Code: CAS-F-SOLMT
Document Title: Synchronous Online Learning Module
Template
Page No.: Page 5 of 5
Revision No.: 1
Effectivity Date: August 2020
Prepared by: Dean
Reviewed by: QMR
Approved by: President

3) Among the reasons of unemployment in the Philippines, which one is the

worst? Defend your answer.
The unemployment rates in the Philippines are relatively high and it
became one of the biggest challenges that have been directly facing our country.

One of the reasons, which I believe is the worst, that affect the great
percentage is the high standard requirements that companies set that tend to be
degrading and discriminatory. In lieu of relying on experience and skills, most Filipino
employers rely on appearances, age and other needless requirements. This derogatory
mind-set of our nation’s job makers doesn’t just affect the economy but the entire
discipline and well-being of the degraded person – emotional, mental, and intellectual,
among others.

Each and every one has the right to work in a setting that is free from
harassment, bullying and discrimination. Discrimination on the basis of race, gender,
age, religion or other protected attributes violates someone’s right to be treated with
respect, dignity and fairness.

SUBMITTED BY: SUBMITTED TO:

España, Josiah Samuel O. Prof. Ma. Teresa Hidalgo

BSA 2A2 Instructress