MACROECONOMICS PROBLEM

1. INFLATION

1.1. INFLATION RATE

1.1.1. [MB(Current year)-MB(Previous year)/MB(Previous year)] x100%

1.1.2. [CPI (Current year )- CPI(Previous year)/CPI(Previous year)] x 100%

1.2. CAUSES

1.2.1. Quantity Theory

1.2.2. Demand Pull Inflation

1.2.3. Cost Push Inflation

1.3. EFFECT

1.3.1. LENDERS

1.3.2. FIXED INCOME/RETIRED

1.3.3. SAVERS

1.4. EFFECT

1.4.1. DEBTORS

1.4.2. FIRMS

1.5. UNAFFECTED

1.5.1. WORKERS WITH COST& LIVING ADJUSTMENT

1.6. METHODS TO CONTROL

1.6.1. MONETARY POLICIES

1.6.2. FISCAL POLICIES

1.6.3. MONETARISM

2. UNEMPLOYMENT RATE

2.1. (Unemployment/Labor force) x 100%

2.2. 4-6% (OPTIMAL)

2.3. INACCURATE DUE TO

2.3.1. Disgruntled job seeker

2.3.2. Underemployment

2.3.3. Inequality

3. LABOR FORCE

3.1. QUALIFICATIONS

3.1.1. 16 years old

3.1.2. cannot be full time-student

3.1.3. cannot be active in millitary duty

3.1.4. not retired

3.1.5. cannot be institutionalized

3.1.6. willing and able to work

4. UNEMPLOYMENT

5. EFFECT

5.1. Lower GDP

5.2. Increase in social problems

5.3. Reduce tax revenue

5.4. Poverty