Economics Analysis For Business 2marks
Economics Analysis For Business 2marks
Economics Analysis For Business 2marks
Unit- V
The total stock of money is an economy is the total of all money reserves held
by individual and organization.
According to okun’s law every two present GDP falls relative to potential gap,
the unemployment rate about one percentage point.
According to Phillip’s “workers are relevant to offer their services at less than
the prevailing rates when the demand for labour is low and unemployment is high so
that usage rates fall very slowly”.
9. Define inflation?
Inflation occurs due to increase in the cost production of goods and services
due to a variety of reasons.
Another important thing to note is that paper currency or coins are fait money,
which means that currency notes and metallic coins serves as money on we fait of
the governments is also called legal lender.
The product market is an equilibrium when saving and investment are equal
s= f(y).
It refers to the rate of interest at which the central bank rediscounts approved
bills of exchange.
It refers to a situation in which those who are willing to world at the prevailing
wage rate are unable to get job.
d) Frictional unemployment
e) Disguised unemployment