Stagflation is the perfect word to characterize the scenario that the host of the business network explained.
The "Phillips Curve" is a tool used in economics that depicts how inflation and unemployment are related to one another and indicates that it is unlikely to have both low inflation and low unemployment at the same time.
Research and development (R&D) is the process of developing and putting into practice novel ideas, technologies, or innovations that have the potential to enhance goods, procedures, or services. In many industries, innovation and competitiveness are fueled by R&D initiatives.
"Structural unemployment" is likely to affect the computer programmer who was trained during the early 2000s tech boom but who has not developed his skill set and is having problems finding job.
The investment instrument that John purchased from his bank is most likely referred to as a "financial asset" because it has a contractual guarantee to take money after two years.
Any augmentation of spending into the revolving stream of revenue is referred to in macroeconomics as a "injection". Leakages and injections are the two primary sources of spending in the circular flow model.
A pattern of economic expansion and contraction over time is known as the business cycle. It is characterized by alternating expansionary and deflationary phases. These phases illustrate the economy's ups and downs as it experiences expansionary and contractionary stages.
An economist is probably looking at the "real output" of the economy when they receive a report that includes the entire value of production that has been adjusted for inflation.
The total economic output produced inside a nation's borders over a given time period, often a year, is measured by the gross domestic product (GDP). It is employed to assess a nation's overall economic development and performance
Every transaction's financial gain is often referred to as "profit." The term "profit" refers to the amount that is left over after all costs associated with producing a good or service have been paid. Profit is the amount of money left over after all costs, such as labor, raw materials, taxes, and overhead, have been subtracted from sales revenue.
The lowest amount of unemployment that an economy can maintain over time without escalating inflation is referred to as the "natural rate of unemployment." The terms "full employment rate" and "non-accelerating inflation rate of unemployment" are also occasionally used to describe it (NAIRU).
The comparative advantage argument states that nations should focus on manufacturing goods and services in areas where they have a lower opportunity cost than other nations. According to this scenario, manufacturing computers in country X has a lower opportunity cost than manufacturing wine in country Y.
The physical capital used in the manufacturing process would be highlighted when discussing the automobile assembly line equipment. The actual assets and instruments utilized in the creation of commodities and services are referred to as physical capital, sometimes known as "capital goods" or "real capital."
The example provided shows the idea of "speculative demand for money," where a young professional sets aside money each month to buy investment instruments like stocks and bonds.
Specialization and producing goods where there is a lower opportunity cost are key components of the comparative advantage theory.
