Macroeconomic instability, unemployment and inflation

Darbas anglų kalba. Introduction. The economic cost of unemployment and three groups that bear the unequal burdens of unemployment. The GNP gap and Okun's law. Inflation and the rate of inflation. International comparisons of inflation rate and unemployment rate data. Demand – pull inflation and its effects. Cost – push inflation and its relation to per unit production costs. Two types of cost – push or supply – side inflation. Difference between real and nominal income. Costs and benefits for various groups from unanticipated inflation. Possible effects of inflation on output and employment. Conclusions.