Inflation rate refers

Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.

Year

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2009

0.00

-0.10

-0.30

-0.10

-1.10

-1.80

-2.20

2008

0.70

1.00

1.20

0.80

1.30

2.00

2.30

2.10

2.10

1.70

1.00

0.40

2007

0.00

-0.20

-0.10

0.00

0.00

-0.20

0.00

-0.20

-0.20

0.30

0.60

0.70

2006

0.00

-0.10

-0.20

-0.10

0.10

0.50

0.30

0.90

0.60

0.40

0.30

0.30

2005

-0.10

-0.30

-0.20

0.00

0.20

-0.50

-0.30

-0.30

-0.30

-0.70

-0.80

-0.10

2004

-0.30

0.00

-0.10

-0.40

-0.50

0.00

-0.10

-0.20

0.00

0.50

0.80

0.20

2003

-0.40

-0.20

-0.10

-0.10

-0.20

-0.40

-0.20

-0.30

-0.20

0.00

-0.50

-0.40

2002

-1.40

-1.60

-1.20

-1.10

-0.90

-0.70

-0.80

-0.90

-0.70

-0.90

-0.40

-0.30

2001

-0.30

-0.30

-0.70

-0.70

-0.70

-0.80

-0.80

-0.70

-0.80

-0.80

-1.00

-1.20

2000

-0.90

-0.60

-0.50

-0.80

-0.70

-0.70

-0.50

-0.80

-0.80

-0.90

-0.50

-0.20

1999

0.30

-0.20

-0.70

-1.20

-1.10

Inflation Rate Definition

In mainstream economics, the word “inflation” refers to a general rise in prices measured against a standard level of purchasing power. Previously the term was used to refer to an increase in the money supply, which is now referred to as expansionary monetary policy or monetary inflation. Inflation is measured by comparing two sets of goods at two points in time, and computing the increase in cost not reflected by an increase in quality. There are, therefore, many measures of inflation depending on the specific circumstances.

The most well known are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of money with output and interest rates. Mainstream economist views can be broadly divided into two camps: the "monetarists" who believe that monetary effects dominate all others in setting the rate of inflation, and the "Keynesians" who believe that the interaction of money, interest and output dominate over other effects. Other theories, such as those of the Austrian school of economics, believe that an inflation of overall prices is a result from an increase in the supply of money by central banking authorities.

Related concepts include: deflation, a general falling level of prices; disinflation, the reduction of the rate of inflation; hyper-inflation, an out-of-control inflationary spiral; stagflation, a combination of inflation and poor economic growth; and reflation, which is an attempt to raise prices to counteract deflationary pressures(source: wikipedia)

Unemployment rate is defined as the level of unemployment divided by the labour force. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalised and those serving in the military.

Year

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2009

4.10

4.40

4.80

5.00

5.20

5.40

5.70

2008

3.80

3.90

3.80

4.00

4.00

4.10

4.00

4.10

4.00

3.80

4.00

4.30

2007

4.00

4.00

4.00

3.90

3.80

3.70

3.60

3.80

4.00

4.00

3.80

3.70

2006

4.40

4.10

4.10

4.10

4.10

4.30

4.10

4.10

4.10

4.00

4.00

4.00

2005

4.50

4.60

4.50

4.50

4.50

4.30

4.40

4.30

4.20

4.40

4.50

4.40

2004

4.90

4.90

4.80

4.80

4.70

4.70

4.90

4.80

4.60

4.60

4.50

4.50

2003

5.40

5.20

5.40

5.50

5.40

5.40

5.20

5.10

5.20

5.10

5.10

4.90

2002

5.20

5.30

5.30

5.30

5.40

5.50

5.40

5.50

5.40

5.40

5.20

5.40

2001

4.80

4.70

4.80

4.80

4.90

5.00

5.00

5.10

5.30

5.30

5.40

5.40

2000

4.70

4.90

4.90

4.80

4.60

4.70

4.70

4.60

4.70

4.70

4.70

4.80

1999

4.70

4.60

4.60

4.60

4.70

Unemployment Rate Definition

The labour force is defined as the number of people employed plus the number unemployed but seeking work. The participation rate is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalised). The nonlabour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, kids, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements from the labour force. Changes in unemployment depend on: inflows made up of non-employed people starting to look for jobs and of employed people who lose their jobs and look for new ones; and outflows of people who find new employment and of people who stop looking for employment.

When looking at the overall macroeconomy, several types of unemployment have been identified, including:

Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.

Structural unemployment — This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.

Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning — some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.

Demand deficient unemployment — In Keynesian economics, any level of unemployment beyond the natural rate is most likely due to insufficient demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilization of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X?M). {AE = C + I + G + (X?M)} (source: wikipedia)

Japan Gross Domestic Product (GDP) chart, historical data, forecast and news. Japan is the third largest economy in the world ($4.3 trillion) after the United States and China measured on a purchasing power parity basis. In 2007, the country accounted for 6.6% of the gross world product. The nation has one of the highest GDP per capita, almost $34,0, according to the International Monetary Fund.

Year

Value (USD billion)

2008

4909.27

2007

4384.26

2006

4375.97

2005

4552.11

2004

4605.93

2003

4229.10

2002

3918.33

2001

4095.49

2000

4667.45

1999

4368.74

Gross Domestic Product (GDP)

According to Wikipedia, the gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country's economy. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period—that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits).

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