MGMT 1 Lecture Notes - Lecture 4: Stagflation, Deflation, Gross Domestic Product
Document Summary
Socialism: combination of government-controlled and private businesses, stronger emphasis on social goals (e. g. , more equitable distribution of wealth, high taxes, pros and cons d. i. Social equality and many free social services (e. g. , education, health care) d. ii. Workers and employees enjoy many benefits (e. g. , paid vacation, sick leave) d. iii. Economic indicators: give information about various aspects of an economy b, examples. Frictional quit job, not immediately able to find a job c. ii. Structural structural changes in the economy c. iii. Price of goods and services increase over time: deflation b. i. Prices of goods and services decrease over time: stagflation c. i. Sluggish economy couples with inflation: consumer price index (cpi) d. i. Tracks prices of a bundle of products over time. Productivity: measures output as a function of input, technology has dramatically increased productivity in manufacturing c. In the service sector (very labor intensive), technology may improve quality but not productivity.
