Inflation, unemployment and deflation

Inflation, unemployment and deflation

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 6: Inflation and Business Cycles

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of inflation, unemployment and deflation.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• Phillips curve
• Stagflation
• Deflation: concept and causes

Detailed Microsyllabus

1. Inflation and unemployment

   1. Phillips-curve relationship and its assumptions.
   2. Short-run trade-offs and expectations.
   3. Stagflation and simultaneous adverse movements.

2. Deflation

   1. Meaning and causes.
   2. Demand, debt and business consequences.
   3. Distinguish deflation from slowing positive inflation.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.