macroeconomics

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Introduction

The aim of this is to compare , analyze and contrast between inflation , economic growth and unemployment . To allow the reader to understand the three concepts clearly , we will first define the terms look at the theories available which explains the concepts and compare and /or contrast between the terms . Where possible , we shall be using graphs to illustrate our arguments , To start with let us look at the analysis of the three terms separately and then make comparison at the end when we

have understood all of them precisely (Ambone Gumo 21

Main Body

Economic growth refers to the increase in the level of output (goods and services ) which are being manufactured by the country (an economy ) over time . It is usually measured as an increase in percentage rate of in real GDP (gross domestic product ) in an economy . Economic growth is normally measured in real terms , that is , it is adjusted in to remove the inflation effect on the price of the output i .e , goods and services , Economic growth theory is characteristically referred to growth of production at the level of full employment which is as a result of growth in the aggregate output or aggregate demand . As a discipline , economic growth is normally distinguished from the study known as economics of development . The former primarily talks about how countries can move forward their economies . The latter refers to the study of the aspects of the economy and development process in...