MAJOR ISSUES IN MACROECONOMICS
MAJOR ISSUES IN MACROECONOMICS
STAGFLATION:
How to control business cycles and acheive economic stability has been a very difficult problem for the exonomics to solve,but during the decade of 1970s and in some later times in the subsequent decades market economics have experienced a still more intricate problem which has been described as stagflation ,while in business cycles ,recession or depression is accompanied by high unemployment and falling prices ,in the seventies recession or stagnation was accopanied by not only high unemployment but also rapid inflation ,since in that period high unemployment and recession co-existed with high inflation,this problem was given the name stagflation ,this stagflation could not be ex-plained with the keynesian theory which focuses on the demand side,therfore ,a new economics thought which is called supply -side economics emerged which explained stagflation by laying stress on the supply -side of economic activity ,stagflation is an important issue of modern macoreconomics ,stagflation along with supply -side economics will be edplained at length in a separate chapter.
info education macroeconomics
by santosh
STAGFLATION:
How to control business cycles and acheive economic stability has been a very difficult problem for the exonomics to solve,but during the decade of 1970s and in some later times in the subsequent decades market economics have experienced a still more intricate problem which has been described as stagflation ,while in business cycles ,recession or depression is accompanied by high unemployment and falling prices ,in the seventies recession or stagnation was accopanied by not only high unemployment but also rapid inflation ,since in that period high unemployment and recession
info education macroeconomics
by santosh
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