employment rate on inflation. For this purpose data from 1995 to 2008 has been collected and analyzed through OLS technique. The result of the model shows that GDP growth rate and employment rate adequately affect inflation. With the increase in GDP and employment‚ inflation decreases. INTRODUCTION Inflation is a burning issue in Pakistan. It is generally felt that for several years Pakistan has had a double-digit inflation. The public sector has used a mix of policies to control inflation‚ and it is
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economic instability‚ especially in prices‚ evidenced in the U.S. economy since the mid 1960’s. Inflation in the past few years has not been a major macro economic problem‚ but its spectere‚ as demonstrated by the Fed’s recent increases in interest rates‚ is never for the agendas of financial decision makers. Macro economic instability has necessitated that expectations about the future rate of inflation be taken into consideration in making decision(s) about which capital projects will be undertaken
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and inflation. In your discussion make use of the diagrammatic representation of the macroeconomy developed in lectures in Term 2 | Unemployment and inflation are factors that have negative effects on the performance of the economy as a whole. Therefore‚ policies to achieve low and stable price inflation‚ a high and stable level of employment are big macroeconomics issues of our time. This essay focuses on discussing the role of government policy on reducing unemployment and inflation in relation
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The economy of Pakistan is 35th largest in the world. Pakistan‚ with a population of about 16 million people has undergone a remarkable economic growth during last few years‚ but one of the core problem is still Inflation. Inflation effects the different sectors of the economy. Hike in fuel prices restricts our life‚ decreasing the purchasing power. Now a day the prices of Petroleum have increased‚ which means the price of everything would increase likewise. The economist report highlights that in
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examines the medium term forecasting of inflation rate in Bangladesh. Four important macroeconomic variables which have inter relationship among themselves are considered in the study and three different VEC models are estimated starting from a two-variable model including money supply and CPI‚ and sub-sequentially adding some financial variables such as real GDP and nominal exchange rates. This paper empirically explores the present relationship between inflation and macroeconomic variables in the
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Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish‚ fruit‚ and meat. Suppose that on January 1‚ 2007‚ fish sold for $2.50 per pound‚ meat was $3.00 per pound‚ and fruit was $1.50 per pound. At the end of the year‚ you discover that the catch was low and that fish prices had increased to $5.00 per pound‚ but fruit prices stayed at $1.50 and meat prices had actually fallen to $2.00. Can you say what happened to the overall “price level”
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Eurozone stimulus looms as wage‚ inflation decline Governments and central bankers in the Eurozone are getting a little flexibility due to lessened inflation pressure‚ heads are turning towards stimulating economic growth. According to EU’s statistics office‚ they’ve hit the lowest annual inflation 1.8% in February. Some are raising expectations about the possibility of ECB cutting interest rates this year‚ because of the weaknesses in the Eurozone. Whereas opposed many are unsure
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DISTINGUISH BETWEEN COST PUSH & DEMAND PULL INFLATION [10 Marks] Can you remember how much you paid for the same items you buy now‚ two years ago? This increase in the general price level of goods and services in an economy is inflation‚ measured by the Consumer Price Index and the Producer Price Index; Commonly referred to as Inflation. There are however‚ different types of inflation’s‚ each affected by different factors. Aggregate supply is the total volume of goods and services produced by an
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ECONOMIC POLICY DEBATE Vietnam ’s Rising Inflation and Asset Booms: An External Explanation Kenichi Ohno ABSTRACT Vietnam is experiencing a rising inflation and volatility in asset markets in recent years. The main reason for this is a large inflow of foreign exchange relative to economic size‚ which generates liquidity surplus‚ economic overheating and accumulation of international reserves. Exchange overvaluation is also occurring but it is partly offset by the falling US dollar to which the
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Unit 38 Business and the Economic EnvironmentLearner name Assessor nameSameeha Hussain/Antonio ZarroDate unit issuedUnit DeadlineDate unit submitted by student27/01/1419/04/14 Criteria referenceTo achieve the criteria the evidence must show that the learner is able toAsst Task no. Assessor initial date when metPASS CRITERIAP1 Explain the effects of changes in the economic environment on a selected business P2 Identify how government policies impact on a selected business P3 Identify the impact
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