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TOTAL VALUE OF
ALL FINAL GOODS
AND SERVICES
PRODUCED IN AN
ECONOMY IN A
GIVEN YEAR
— VALUE
— FINAL GOODS AND SERVICES
— AN ECONOMY
— GIVEN FINANCIAL YEAR
PRODUCT APPROACH
INCOME APPROACH
Consumption
Investment
Government Purchase
Net Export
0
5E+10
1E+11
1.5E+11
2E+11
2.5E+11
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
1
2
3
4
5
6
7
8
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
1
2
3
4
5
6
7
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
20
40
60
80
100
120
140
160
180
200
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
— STANDARD OF LIVING
— HOUSEHOLD PRODUCTION &
UNPAID SERVICES
— DISTRIBUTION OF INCOME
— ENVIRONMENTAL POLLUTION
OR DEGRADATION
INFLATION IS A SUSTAINED
INCREASE IN THE GENERAL
PRICE LEVEL OF GOODS AND
SERVICES IN AN ECONOMY
OVER A PERIOD OF TIME
DEMAND
FACTOR
SUPPLY
FACTOR
0
2
4
6
8
10
12
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
VOLUNTARYFRICTIONAL
INVOLUNTARYCYCLICAL SEASONAL
STRUCTURAL
0
1
2
3
4
5
6
1996 2000 2003 2005 2009 2010
0
1
2
3
4
5
6
7
8
1996 2000 2003 2005 2009 2010
Unemployment, female (% of female labor force) (national estimate) Unemployment, male (% of male labor force) (national estimate)
A. W. Phillips, Describing A
Historical Inverse Relationship
Between Rates Of Unemployment
& Corresponding Rates Of
Inflation
Decreased That
Unemployment In An Economy
Will Correlate With Rates Of
Inflation.
It Has Not Been
Observed In The Long
Run
In 1968, Milton Friedman
Asserted That The Phillips Curve
Was Only Applicable In The
Short-run And That In The Long-
run, Inflationary Policies Will
Not Decrease Unemployment
The Johansen Multivariate Co-
integration Test Indicates That
Long Run Phillips Curve Does Not
Exist In Bangladesh
Granger Causality Test Suggests A
Unidirectional Positive Causality
From Rate Of Inflation To Rate Of
Unemployment That Is Totally The
Opposite Picture Of The Expected
Relationship In Phillips Curve
Okun's Law Is Named After
Arthur Melvin Okun, Who
Proposed The Relationship
Between Unemployment And
Losses In A Country’s Production
In 1962
A Long Run Relationship Exists
Between Unemployment And
GDP And An Inverse
Relationship Exists Between
Them In Bangladesh
A Study Of 27 Years From
1984 To 2010 Found That, A
Reduction In Unemployment
By 1 Percent Will Increase
GDP By 1.12 Percent