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Defining better the equation between unemployement and national output part 2

Let’s break down the equation \( u = 1 - \frac{Y}{L} \) in a very simple way.

Understanding the equation where unemployment is related with the national output

Let's break down the steps of this calculation in a way that’s easier to understand, like explaining it step-by-step for someone who’s learning algebra or basic economics.

Npm vs new weberian

Certainly! The New Public Management (NPM) and the New Weberian State (NWS) approaches represent two distinct models of public administration, each with different emphases and strategies for managing the public sector. Here are the key differences between them:

Graph shows interest rate and housing in US

Here is the combined graph showing both the US Housing Price Index and Interest Rates from 2000 to 2024. The blue line represents the Housing Price Index, while the red line shows the Interest Rates. This comparison illustrates how fluctuations in interest rates can relate to changes in housing prices over time.

Inflation and interest rate

Yes, historically, low interest rates can contribute to the formation of economic bubbles, particularly in the housing market. Here's how:

Riddles

22nd Jul- 2020, by: Editor in Chief
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Meaning of 45 degree in economics chart

Recent news

The **45-degree line** in economics and geometry refers to a line where the values on the x-axis and y-axis are equal at every point. It typically has a slope of 1, meaning that for every unit increase along the horizontal axis (x), there is an equal unit increase along the vertical axis (y). Here are a couple of contexts where the 45-degree line is significant:

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2 weeks ago

hyperinflation in hungary

Recent news

The **hyperinflation in Hungary** in the aftermath of World War II (1945–1946) is considered the worst case of hyperinflation in recorded history. The reasons behind this extreme economic event are numerous, involving a combination of war-related devastation, political instability, massive fiscal imbalances, and mismanagement of monetary policy. Here's an in-depth look at the primary causes:

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2 weeks, 6 days ago

what is neutrailty of money

Recent news

**Neutrality of money** is a concept in economics that suggests changes in the **money supply** only affect **nominal variables** (like prices, wages, and exchange rates) and have **no effect on real variables** (like real GDP, employment, or real consumption) in the **long run**.

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2 weeks, 6 days ago

Japan deflationary phenomenon

Recent news

Deflation in Japan, which has persisted over several decades since the early 1990s, is a complex economic phenomenon. It has been influenced by a combination of structural, demographic, monetary, and fiscal factors. Here are the key reasons why deflation occurred and persisted in Japan:

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2 weeks, 6 days ago

What the tips against inflation

Recent news

Hedging against inflation involves taking financial or investment actions designed to protect the purchasing power of money in the face of rising prices. Inflation erodes the value of currency over time, so investors seek assets or strategies that tend to increase in value or generate returns that outpace inflation. Below are several ways to hedge against inflation:

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3 weeks ago

Long and short run philip curve

Recent news

The **Phillips Curve** illustrates the relationship between inflation and unemployment, and how this relationship differs in the **short run** and the **long run**. Over time, economists have modified the original Phillips Curve framework to reflect more nuanced understandings of inflation and unemployment dynamics.

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3 weeks ago

How the government deal with inflation (monetary and fiscal) policies

Recent news

Dealing with inflation requires a combination of **fiscal and monetary policy** tools. Policymakers adjust these tools depending on the nature of inflation—whether it's **demand-pull** (inflation caused by excessive demand in the economy) or **cost-push** (inflation caused by rising production costs). Below are key approaches to controlling inflation through fiscal and monetary policy.

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3 weeks ago

Understand inflation from IS LM curve

Recent news

The IS-LM (Investment-Savings and Liquidity preference-Money supply) and AD-AS (Aggregate Demand-Aggregate Supply) models provide a framework for understanding the causes of inflation from different macroeconomic perspectives. Here’s how inflation can be explained using these two models:

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3 weeks ago

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