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With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals?
Wiki User
∙ 12y ago
im not too sure if im correct but
injections exceeding withdrawals mean inflation increases as theres TOO MANY PEOPLE AND MONEY CHASING TOO FEW GOODS....this means that producers will increase the price of the good so that they will be able to bring demand to an equilibrium point...
because inflation has increased the monetary committee will increase interest rates thus causing unemployment to increase as producers will not be able to pay wages ......... or something like that
ONCE AGAIN IM NOT COMPLETELY SURE IF IM RITE
Wiki User
∙ 12y ago
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With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?
When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace
What does the term stagflation reference in financial terms?
The term, stagflation, means a condition where unemployment is high, and thus, economic growth is slow. Inflation increases at a greater rate than the economy, usually making it difficult for people to keep up with rising prices.
What is the inflation rate from 1980 to 2009?
There's a pretty good discussion of this at http://understandingthemarket.com/?p=65 It appears that is was just over 3%, accoring to the above reference.
What is the current inflation rate in India and what effects of inflation in India?
Current inflation in India is a bit volatile. However, given different estimated values of commonly understood inflation in India, the Wholesale Price Index for all commodities is 156.8 for the month of October 2011 with a base of 2004-05=100. Inflation is the rate of change over any reference period. So, If we compare the figure with October 2010, the inflation is around 9.5 percent. However, wholesale price index (WPI) is not the only indicator to understand inflation. There are other indicators such as Consumer Price Index (CPI). Even within WPI and CPI there are also divisions for different groups of population. In India, for such subgroups inflation is measured by finding the rate of change in such indices for groups like agricultural labourers, urban non-manual employees, Industrial workers and so on. For a detailed description on inflation in Indian context, one may refer to the link <http://lokkatha.com/150/index.php/economics/55-inflation-a-price-rise-in-essential-commodities-a-consumers-perspective> Inflation & Price Rise in Essential Commodities: A Consumer's Perspective
Why is it that when there is low inflation workers will accept a low wage increase?
From the worker's perspective, raises are judged good or bad in reference to inflation. Its really a question of buying power more than the actual amount of money. Think of this example... If inflation is running 2% per year and you get a 2% raise, you break even. Your salary buys the same stuff at the start the year and the end of the year. If inflation is 2% and you got a 4% raise, you're now making more money than before. You have more buying power relative to the economy as a whole. So as a worker, your goal is to be able to buy more each time you get a raise. So if inflation is low, you can accept a lower raise and still increase buying power as long as the raise is higher than inflation. So when infaltion is low, a low raise (that's still bigger than the rate of inflation) just as effective as a large raise when inflation is high.
With reference to the circular flow model of the economy explain what happens to economic growth unemployment and inflation when injections exceed withdrawals or leakages?
When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace
What does the term stagflation reference in financial terms?
The term, stagflation, means a condition where unemployment is high, and thus, economic growth is slow. Inflation increases at a greater rate than the economy, usually making it difficult for people to keep up with rising prices.
Who gives intravenous injections in hospital?
A nurse gives them or sometimes a scrub......... check wikipedia for reference
What has the author Armelle Boreau written?
Armelle Boreau has written: 'Inflation and growth with special reference to Brazil'
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Be truthful. Employers do background and reference checks. If you are caught lying, they will not hire you.
How do i file for unemployment like an acctual application on line or can i have directions to the earest unemployment office I live in Oakdale Louisianna 71463. Please respond back.?
You can file for unemployment online at http://www.laworks.net/OnlineServices.asp The website explains all the requirements for eligibility. Be sure you have access to a printer because you will need copies of the application for future reference.
What has the author Domenico Gagliardo written?
Domenico Gagliardo has written: 'The Kansas industrial court' -- subject(s): Arbitration, Industrial, Industrial Arbitration, Kansas. Court of Industrial Relations, Kansas 'The Kansas labor market, with special reference to unemployment compensation' -- subject(s): Unemployed, Labor and laboring classes, Insurance, Unemployment, Unemployment Insurance
What is the inflation rate from 1980 to 2009?
There's a pretty good discussion of this at http://understandingthemarket.com/?p=65 It appears that is was just over 3%, accoring to the above reference.
What has the author B N Ghosh written?
B. N. Ghosh has written: 'Gandhian Political Economy' 'Principles of Economic Science' 'Political Economy of Development and Underdevelopment' 'Disguised unemployment in underdeveloped countries, with special reference to India' -- subject(s): Disguised unemployment, Agricultural laborers
i used to work for a Kayenta fast food restaurant called Mc Donalds and wanted to know how to go about this unemployment application routine?
You can apply for unemployment benefits online at http://www.unemploymenthelpcenter.com Use a computer that is connected to a printer because you will need to print out the pages you complete for future reference.
What is the current inflation rate in India and what effects of inflation in India?
Current inflation in India is a bit volatile. However, given different estimated values of commonly understood inflation in India, the Wholesale Price Index for all commodities is 156.8 for the month of October 2011 with a base of 2004-05=100. Inflation is the rate of change over any reference period. So, If we compare the figure with October 2010, the inflation is around 9.5 percent. However, wholesale price index (WPI) is not the only indicator to understand inflation. There are other indicators such as Consumer Price Index (CPI). Even within WPI and CPI there are also divisions for different groups of population. In India, for such subgroups inflation is measured by finding the rate of change in such indices for groups like agricultural labourers, urban non-manual employees, Industrial workers and so on. For a detailed description on inflation in Indian context, one may refer to the link <http://lokkatha.com/150/index.php/economics/55-inflation-a-price-rise-in-essential-commodities-a-consumers-perspective> Inflation & Price Rise in Essential Commodities: A Consumer's Perspective
Why is it that when there is low inflation workers will accept a low wage increase?
From the worker's perspective, raises are judged good or bad in reference to inflation. Its really a question of buying power more than the actual amount of money. Think of this example... If inflation is running 2% per year and you get a 2% raise, you break even. Your salary buys the same stuff at the start the year and the end of the year. If inflation is 2% and you got a 4% raise, you're now making more money than before. You have more buying power relative to the economy as a whole. So as a worker, your goal is to be able to buy more each time you get a raise. So if inflation is low, you can accept a lower raise and still increase buying power as long as the raise is higher than inflation. So when infaltion is low, a low raise (that's still bigger than the rate of inflation) just as effective as a large raise when inflation is high.
