Note_card-13.docx - Biren Patel Basic Macroeconomics Note...

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Biren PatelBasic MacroeconomicsNote cards – 131.Demand pull Inflation Graphically and definitionIt defines as constantly rising prices created by demand side factors. 2.Cost push inflation definition and graphIt is caused by the supply side factor. It usually occurs when Unions ask for increases in wages beyond the increases in productivity.Wages increase beyond productivityCompanies raise price greater then and difference between wages and productivity increasesProfits increasesWages increase beyond productivityCompanies raise Price greater then and difference between wages and productivity increasesProfits increases
3.Civilian labor forceIt is composed of all those person having jobs or seeking jobs.4.UnemploymentIt is composed of all those person who are out of work or are seeking work.5.UnderemploymentIt is composed of all those person who have market skills above those required by the currentemployment.

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