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MACROECONOMICS CONCEPTS

NAME: LAIDZY G.

The study of the entire behavior of the economy and the factors and forces, which cause depression, inflation and recession.

GOVERNMENT FUNCTIONS

MACROECONOMICSINFLATIONBUSINESS CYCLEINTERNATIONAL TRADEEMPLOYMENT

GOVERNMENT FUNCTIONSThree Main FunctionsIncreasing efficiencyPromote equityFostering macroeconomics stability and growthCircular FlowIs amodelof theeconomyin which the major exchanges are represented as flows ofmoney,goodsandservices, etc. betweeneconomic agents.

GOVERNMENT FUNCTIONSFIVE SECTORS:HouseholdFirmsBanksGovernmentRest of the World

LEAKAGE & INJECTIONSLeakage means withdrawal from the flow.Injections means introduction of income into the flow.Circular Flow

GOVERNMENT FUNCTIONSCircular Flow

HOUSEHOLDFIRMSBANKSGOVERNMENTREST OF THE WORLDSavingsTaxImport spending (m) in $InvestmentGovt expendituresExport earning (x) in $ConsumptionDelivery of goods and servicesC E L LProfit, Interest, Rent, Wage

GOVERNMENT FUNCTIONSTHE CIRCULAR FLOW DIAGRAMCircular FlowFIRMSProduce and sell goods and servicesHire and use factors of productionMARKETS FOR GOODS AND SERVICESFirms sellHousehold buyMARKETS FOR FACTORS OF PRODUCTIONHousehold sellFirm buyHOUSEHOLDBuy and consume goods and servicesOwn and sell factors of productionRevenueSpendingWage, rent& profitIncomeGoods & services soldGoods & services boughtLabor, land & capitalFactors of productionFlow of inputs & outputsFlow of money

An increase in the supply of currency or credit relative to the availability of goods and services, resulting in higher prices and a decrease in the purchasing power of money.

INFLATIONEffects of InflationInflation LosersThose with fixed or relatively-fixed incomes are losers in an inflationary situation since there income would no longer be enough to purchase the same goods they previously consumed due to higher prices.

INFLATIONEffects of InflationInflation GainersThese are the lucky or skilled individuals who are able to buy and sell the goods that enjoy the sharpest price increases. These goods are usually land, gold, jewelry, etc.Effect on the GrowthInflation is a sign that an economy is growing. The lack of inflation may be an indication that the economy is weakening.

INFLATIONDemand Pull Inflationdemand is growing faster than supply, prices will increase.Cost-Push Inflationcontinued increase in some costs of production.Creeping Inflationa mild inflation with a gradual increase in prices but will continue to rise.Types of Inflation

INFLATIONWalking Inflationit heats up the economic growth moderately (3-10% a year).Galloping Inflationinflation rises to ten percent or greater, it wreaks havoc on the economy as money loses value so fast.Hyperinflationwhen prices skyrocket more then 50% - a month, an out of control inflation.

Types of Inflation

INFLATIONStagflationthe economic growth rate slows down, and unemployment remains steadily high.Core Inflationmeasures rising prices in everything except food and energy.Deflationis the opposite of inflation its when prices fall. Deflation can turn a recession into a depression.

Types of Inflation

INFLATIONWage Inflationwhen workers pay rises faster than the cost of living. This occurs when there is a shortage in workers. Asset Inflationa rise in price of asset, as opposed to ordinary goods and services. Occurs in one asset class, such as housing, oil or gold.

Types of Inflation

A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households.

INFLATIONConsumer Price Index (CPI)Inflation Rate CPI year2 - CPI year1 X 100 CPI year1=YEARCPI20069.220079.8200810.2200910.6201011

CPI 2008 - CPI 2007 X 100 CPI 2007= 10.2 - 9.8 X 100 9.8= 4.08=

There is an increase in the average price of 4.08% from

Consumer Price IndexYear-on-Year Inflation Rates in the Philippines, All ItemsJanuary 2008 - December 2013MonthYear200820092010201120122013Jan.4.67.13.94.04.03.1Feb.5.17.23.94.72.73.4Mar.5.96.73.94.92.63.2April7.35.64.04.73.02.6May8.24.33.94.93.02.6June9.43.23.65.22.92.7July10.22.23.74.93.22.5Aug.10.51.74.14.63.82.1Sept.10.12.33.84.73.72.7Oct.9.72.93.35.23.22.9Nov.9.13.53.74.72.83.3Dec.7.84.43.64.23.04.1Avg.8.34.23.84.63.23.0

EMPLOYMENTLabor Force Survey (LFS)The LABOR FORCE consists of all persons over the age of 15 who are either working for pay or actively seeking paid employment.People who are not employed and not actively seeking employment are not counted as part of the labor force.

PhilippinesApril 2014(excludes Leyte)April 2013(excludes Leyte)April 2013(includes Leyte)Population 15 years and over63,77362,81964,090Labor Force Participation Rate (%)65.263.863.8Employment Rate (%)93.092.492.5Unemployment Rate (%)7.07.67.5Underemployment Rate (%)18.219.219.2

EMPLOYMENTLABOR FORCE PARTICIPATION RATE is the percentage of the working-age population working or seeking employment.

Labor Force Participation

EMPLOYMENTStatistics on Filipino women and men's labor and employment

Labor Force Participation

EMPLOYMENTUnemployment RateUNEMPLOYMENTPeople able, available and willing to find work and actively seeking work but not employedOkuns Law states that for each additional 1 percent increase in unemployment there is a corresponding 2 percent decline in output (GDP).

Is the proportion of the labor force that is unemployed. To calculate the rate, you need to know the number of people unemployed and the number of people in the labor force.

EMPLOYMENTUnemployment RateUnemployment Rate No. of Unemployed People Labor Force=SAMPLE PROBLEMGiven:Unemployed = 8,800,000Labor Force = 147,000,000

Unemployment Rate 8,800,000 147,000,000= 0.06 x 100(percentage)=

6.0 %=

EMPLOYMENTTypes of Unemployment

Voluntary versus Involuntary Unemployment

Unemployment can be broken down into voluntary unemployment- unemployment due to people willingly leaving previous jobs and and now looking for new ones- and involuntary unemployment- unemployment due to people getting laid off or fired from their previous jobs and needing to find work elsewhere.

EMPLOYMENTTypes of Unemployment

Frictional UnemploymentIs an unemployment that occurs because it takes workers some time to move from one job to another.In these cases, a worker must look around for a job that it is a good fit for her, and this process takes some time. During this time, the individual is considered to be unemployed, but unemployment due to frictional unemployment is usually thought to last only short periods of time.

EMPLOYMENTTypes of Unemployment

Example:A lot of workers leave or lose their jobs before they have other work lined upWhen students move into the work force for the first timeWhen an individual moves to a new city and needs to find work.when women re-enter the work force after having children.

EMPLOYMENTTypes of Unemployment

Cyclical Unemployment

occurs during recessions because, when demand for goods and services in an economy falls, some companies respond by cutting production and laying off workers rather than by reducing wages and prices.

EMPLOYMENTTypes of Unemployment

Example:

An auto worker may be laid off during a recession, when people are buying fewer cars. When people buy fewer cars, the auto makers don't need as many employees to meet the consumer demand. So as the demand for cars decreases, so does the demand for auto workers.

EMPLOYMENTTypes of Unemployment

Structural Unemployment

occurs because some labor markets have more workers than there are jobs available, and for some reason wages don't decrease to bring the markets into equilibrium.results when workers possess skills that aren't in high demand in the marketplace and lack skills that are in high demand.results when there is a mismatch with workers' skills and employers' needs.

EMPLOYMENTTypes of Unemployment

Example:

The newspaper industry has been in decline since 2000, as web-based advertising has taken over its source of revenue. Employees, such as journalists, printers and newspaper delivery boys, who were dependent upon that industry were laid off. Since their skills were narrowly focused on the newspaper's method of distributing news, they have a harder time getting a different job unless they are retrained.

EMPLOYMENTTypes of Unemployment

Seasonal Unemployment

occurs when there is limited need for a specific type of work to be performed during certain times of the year.Often professionals who work in a specific season either charge fees for their services that provide the equivalent of an annual income or work in multiple fields with different prime seasons.

EMPLOYMENTTypes of Unemployment

Example:

LifeguardingWhile almost every body of water that is open for swimming requires a lifeguard, there is far more frequent swimming in warm seasons than cold seasons. There are far fewer swimming facilities open and in need of a lifeguard during the cold months. That said, it is notable that lifeguards are often students who, during warm seasons, are unoccupied with scholastic obligations, which makes it a win-win situation for employers and employees alike.

EMPLOYMENTTypes of Unemployment

Disguised Unemployment

This is when people do not have productive full-time employment, but are not counted in the official unemployment statistics. This may include:People on sickness / disability benefits (but, would be able to do some jobs)People doing part-time work.People forced to take early retirement and redundancy

EMPLOYMENTTypes of Unemployment

Disguised unemployment could also include people doing jobs that are completely unproductive, i.e. they get paid but they dont have a job. In a developing economy like China, many workers in agriculture may be adding little if anything to overall unemployment, therefore this type of employment is classed as disguised unemployment.

EMPLOYMENTUNDEREMPLOYMENT

A situation in which a worker is employed, but not in the desired capacity, whether intermsof compensation,hours, orlevelofskill andexperience. While not technicallyunemployed, the underemployed are often competing foravailable jobs.

The term BUSINESS CYCLE or ECONOMIC CYCLE refers to economy-wide fluctuations in production or economic activity over several months or years, around a long-term growth trend.

BUSINESS CYCLE

BUSINESS CYCLEPhases of Business CyclePeak (boom) - the upper turning of a business cycleContraction (slowdown) - A slowdown in the pace of economic activityRecession ->trough - the lower turning point of a business cycle, where a contraction turns into an expansionExpansion - a speedup in the pace of economic activity

INTERNATIONAL TRADEThe Gains from International Trade

IMPORTS are the goods and services that we buy from people in other countries.

EXPORTS are the goods and services we sell to people in other countries.

INTERNATIONAL TRADEAn ImportAn importer in the market for carsThe market for cars without international trade is illustrated in figure 7.3(a)The market for cars with international trade is illustrated in figure 7.3(b)

Markets and the Distribution of Gains and Losses

INTERNATIONAL TRADEA Market With Imports

An Import

00.51.0 1.5

Quantity (millions of cars per year)Price (thousand of dollars per car)

DASA

10 15 20 25 30 35Quantity Produced andconsumed

Price withno trade

Equilibrium withoutinternational tradeFigure 7.3(a)

INTERNATIONAL TRADEAn Import

QuantityConsumed increases

QuantityProduceddecreases

World Price

00.51.0 1.5

DASA

10 15 20 25 30 35

Imports

QuantityproducedEquilibrium in a market with imports

Quantity consumed

Pricefalls

Figure 7.3(b)Price (thousand of dollars per car)Quantity (millions of cars per year)

INTERNATIONAL TRADEBenefits of Trade

An Import

Consumer goods

Capital goods01234551015

b

a

c

INTERNATIONAL TRADEWinners and losers in an import market

By comparing consumer surplus and producer surplus with imports and without imports, consumers gain and producers lose

An Import

INTERNATIONAL TRADEGains and Losses in a Market Without Imports

An Import

Producer surplus

Consumersurplus

00.51.0 1.5

DASA

10 15 20 25 30 35Consumer and producer surplus withoutinternational tradeEquilibrium with nointernational trade

Figure 7.4(a)Price (thousand of dollars per car)Quantity (millions of cars per year)

INTERNATIONAL TRADEAn ImportPrice (thousand of dollars per car)Quantity (millions of cars per year)

ConsumerSurplusexpands

Increase intotal surplusfrom imports

Producer Surplusshrinks

World Price

00.51.0 1.5

DASA

10 15 20 25 30 35

Gains and losses from imports

Figure 7.4(b)

INTERNATIONAL TRADEAn ExportCountry X is an exporter in the market for coal because our costs of production are lower that the world price.Equilibrium without international trade is illustrated in figure 7.5(a)Equilibrium with international trade is illustrated in figure 7.5(b)

Markets and the Distribution of Gains and Losses

INTERNATIONAL TRADEA Market With Exports

An Export

0100200 300

Quantity (millions of tonnes per year)Price (dollars per tonne)

DASA

25 40 50 75 100Quantity Produced andconsumed

Price withno trade

Equilibrium withoutinternational tradeFigure 7.5(a)

INTERNATIONAL TRADEAn ExportFigure 7.5(b)

Demandincreases

World Price

0100200 300

DASA

25 40 50 75 100Equilibrium in amarket with exports 125DA

Exports

Quantityconsumed

Consumption can increaseDecrease, or remain the same- here it remains the same

Pricerises

Quantity Produced

Quantity (millions of tonnes per year)Price (dollars per tonne)

INTERNATIONAL TRADE

Winners and losers in an export market

We can see who gains and who loses by looking at the changes to consumer surplus and producer surplus

Consumer surplus remains the same while producer surplus increases

Producers gain because they receive higher price, sell more and receive a larger producer surplus

An Export

INTERNATIONAL TRADE

Gains and Losses in a Market With Exports

An Export

Consumersurplus

Producer surplus

0100200 300

DASA

25 40 50 75 100Equilibrium with no internationaltrade

Consumer and producersurplus without international tradeFigure 7.6(a)Quantity (millions of tonnes per year)Price (dollars per tonne)

INTERNATIONAL TRADEAn ExportQuantity (millions of tonnes per year)Price (dollars per tonne)

World Price

0100200 300

DASA

25 40 50 75 100The gains and losses from export 125DA

Producer Surplusexpands

ABDECF

Consumer surplus can increasedecrease, or remain the same- here it remains the same

Increase in total surplusFrom exports = D+E+F

Figure 7.6(b)

INTERNATIONAL TRADEInternational Trade RestrictionsGovernments restrict international trade to protect domestic producers from competition by using three main tools:

TariffsSubsidiesQuotas

INTERNATIONAL TRADEA tariff is a tax that is imposed by the importing country when an imported good crosses its international boundary.

A subsidy is a payment made by a government to a domestic producer based on the quantity produced

A quota is a limit on the quantity of a good that may be imported

International Trade Restrictions

INTERNATIONAL TRADEHow subsidies work

A subsidy works just like a tax, but in the opposite direction.A subsidy shifts the supply curve rightward, lowers the price, increase the quantity, and creates a deadweight loss from overproductionIf a subsidy is granted on an export or an import it changes the amount of international trade

International Trade Restrictions

INTERNATIONAL TRADE

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Quantity Price

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iImpact of Tariffs

INTERNATIONAL TRADEImpact on TariffsConsumption lossa measure of the benefit lost to consumers that is not captured by other elements in societyProduction lossthe value of production lost to societyDeadweight lossthe reduction in the total level of welfare (or real incomes) across society due to tariff protection

INTERNATIONAL TRADEImpact on TariffsEffects on foreign producersincome of foreign producers will fall

Government revenuethe government gains by obtaining tariff revenuetariff revenue is essentially a transfer of income from consumers to government and does not represent any net change in the nations economic wellbeing

INTERNATIONAL TRADEImpact of Quotas

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Quantity Price

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Pd PQ Pwehgjfi

INTERNATIONAL TRADE

Military self-sufficiency argumentIncrease domestic employment Diversification for stabilityInfant-industry argumentCheap foreign labour argumentAnti-dumpingTo counter lax environmental standardsArguments for Protection

COMPREHENSIVE AGRARIAN REFORM

NAME: LAIDZY G.

Agrarian Condition In the PhilippinesFor a long period of time, the agrarian system of Philippines was being controlled by the large landlords. The small farmers in Philippines were struggling for their rights to land and other natural resources.

Implementation of Agrarian Reform in PhilippinesThe implementation of Agrarian reforms proceeded at a very slow pace. This was due to the lack of political will. The redistribution of land was also very slow. AGRARIAN CONDITION

The Republic Act No. 6657, alternatively called the Comprehensive Agrarian Reform Law was signed by President Corazon C. Aquino on 10th June, 1988.

The Comprehensive Agrarian Reform Law is responsible for the implementation of the Comprehensive Agrarian Reform Program(CARP) in Philippines. The law focused on industrialization in Philippines together with social justice.Comprehensive Agrarian Reform Law: PhilippinesAGRARIAN CONDITION

The primary objective of instituting the Comprehensive Agrarian Reform law was to successfully devise land reform in Philippines. It was President Arroyo, who signed the Executive Order No. 456 on 23rd August to rename the Department of Land Reform as Department of Agrarian Reform. This had been done to expand the functional area of the law.

The Comprehensive Agrarian Reform Law: ObjectivesAGRARIAN CONDITION

Apart from land reform, the Department of Agrarian Reform began to supervise other allied activities to improve the economic and social status of the beneficiaries of land reform in Philippines.AGRARIAN CONDITIONCARL Objectives

Comprehensive Agrarian Reform Program of 1988, also known as CARP, is a Philippine state policy that ensures and promotes welfare of landless farmers and farm workers, as well as elevation of social justice and equity among rural areas. AGRARIAN CONDITIONCARP Meaning

Agrarian reform is a 100-year history of unfinished reforms after the United States took over the country from the Spaniards.

Before the Hispanic period, there were no owner-cultivators, only communal land owned by the barangay which consisted of a datu, freemen, serfs and slaves.HISTORY OF AGRARIAN REFORM

The Spaniards replaced this traditional system of land ownership, similar to existing systems among several indigenous communities today and distributed the land (haciendas) to the Spanish military and the clergy or established encomiendas (administrative districts). HISTORY OF AGRARIAN REFORM

The 1935 Constitution addressed the issue of foreign access to land, i.e. corporations must have at least 60% Filipino ownership, and use-rights were limited in time. Other reforms included limitations on interest rates on loans and an increase in the sharecropping share from 50% to 70%. But very little of these laws were really followed in practice and the Huk rebellion was born.HISTORY OF AGRARIAN REFORM

Under the Magsaysay and the Macapagal administrations, land reform was again tackled, such as the Mindanao resettlement program and the Land Reform Act of 1955. but no significant results were really achieved in terms of scope and magnitude of land transfer.HISTORY OF AGRARIAN REFORM

With martial law, the whole Philippines was declared a land reform area under PD 27. Significant progress was made, but the continued practice of the share tenancy system, coverage limitation to rice and corn lands, the many exemptions allowed and the shortcomings in support systems (although it was Marcos who set up the new Agrarian Reform Department) did much to limit the affectivity of the reforms in addressing the over-concentration of wealth problem and rural poverty.HISTORY OF AGRARIAN REFORM

The CARP years since 1988 for the first time the program covered all agriculture lands regardless of crop and tenurial arrangements. Land distribution increased substantially about 7 million hectares with about 4.2 million farmer beneficiaries. But the total figures hide disturbing underperformances. HISTORY OF AGRARIAN REFORM

And only about 1.5 million hectares of private agricultural lands have been covered for an accomplishment rate of only about 50% after twenty years.

Moreover the lack of support services, funding and infrastructure, is still prevalent. Of the original estimate of P220 billion to complete the program, only P203 billion have been budgeted by Congress, of which only about P170 billion have been released.

HISTORY OF AGRARIAN REFORM

While there is significant empirical evidence that agrarian reform has yielded significant benefits and has the potential for even greater benefits, the fact is that it has encountered implementation problems.

THE FUTURE OF CARP

Regardless of the problems encountered by CARP, the point is that CARP is not the cause of the continuing poverty nor the obstacle to solving it. On the contrary, completing CARP in accordance with the mandate of the Constitution is a necessary condition to correct social injustice, and achieve sound agricultural development and economic growth.

THE FUTURE OF CARP

Of course, agrarian reform is not a panacea that will solve all our problems. Neither is education, nor health care, nor industrialization nor clean elections, nor honest leadership.

The fact is that the path to growth with equity is a complex process because we need all the programs working together to succeed.

THE FUTURE OF CARP

Of course, agrarian reform is not a panacea that will solve all our problems. Neither is education, nor health care, nor industrialization nor clean elections, nor honest leadership.

The fact is that the path to growth with equity is a complex process because we need all the programs working together to succeed.

THE FUTURE OF CARP

TAXATION

NAME: LAIDZY G.

PURPOSE & IMPORTANCE

TAXATIONThe act of laying a tax, the process or means by which the sovereign, through its law-making body, raises revenues to defray the necessary expenses of government. The purpose of taxation on the part of the government is to provide funds with which to promote the general welfare and protection of its citizens and to enable it to finance its multifarious activities.

TAXATION

Nature in Power of TaxationIt is inherent in sovereignty.It is legislative in character.It is subject to constitutional and inherent limitations.Limitations on the Power of TaxationLimitations ClassifiedConstitutional. Those expressly found in the Constitution or implied from its provision;Inherent. Those, which restricts the power although they are not embodies in the Constitution.

TAXATION

CONSTITUTIONALDue process of Law;Equal protection of the Laws;Rule of uniformity and equity in taxation;No imprisonment for non-payment of a poll tax;Non-impairment of the obligation of contracts;Non-infringement of religious freedom;No appropriation for religious purpose;Limitations

TAXATION

Exemption of religious, charitable and educational entities, non-profit cemeteries, and churches from taxation;Exempt of non-stock, non-profit educational institution from taxation;Concurrence by a majority of all the members of Congress for the passage of a law granting tax exemption;Authority of the President to veto the particular items in a revenue of tariff bill; andNon-impairment of the jurisdiction of the Supreme Court in tax cases.

Limitations

TAXATION

INHERENTRequirement that levy must be for a public purpose;Non-delegation of the legislative power of the tax;Exemption from taxation of the government entities;International comity; andTerritorial jurisdiction.Limitations

Essential Characteristics of TaxTAXES

The enforces proportional contributions from persons and property by the law-making body of the state by virtue of its sovereignty for the support of the government and all public needs.It is an enforced contribution.

It is generally payable in money.

It is proportionate in character.

It is levied on persons or property.

TAXES

It is levied by the state, which has jurisdiction over the person or property.

It is levied by the law-making body of the state.

It is levied for public purposes.Basic Principles of a Sound Tax SystemFiscal Adequacy is a principle which means that the sources of revenue should be sufficient to meet the demands of public expenditure.

TAXES

Equality or theoretical justice means that the tax burden should be proportionate to the taxpayers ability to pay.

Administrative feasibility means that tax laws should be capable of convenient, just, and effective administration.Classification of TaxesAs to subject matter or object: Personal, poll or capitation. Tax of a fixed amount imposed on individuals, residing within a specified territory. Example: community tax

TAXES

Property. Tax imposed on property, whether real or personal, in proportion either to its value. Example: real-estate taxExcise. Any tax which does not fall within the classification of a poll tax or a property tax. Example: value added tax

Classification of TaxesAs to purpose: General, fiscal, or revenue. Tax imposed for the general purpose of the government. Example: income tax

TAXES

Special or regulatory. Tax imposed for a special purpose. Example: protective tariffs

Classification of TaxesAs to scope (or authority imposing the tax: National. Tax imposed by the national government. Example: custom dutiesMunicipal or Local. Tax imposed by municipal or public corporations (local government). Example: real estate tax

TAXES

Classification of TaxesAs to determination of account: Specific. Tax of a fixed amount imposed by the head or number, or by some standard of weight or measurement; it requires no assessment (valuation) other then the listing or classification of the subjects to be taxed. Example: excise taxes on gasolineAd valorem. Tax of a fixed proportion of the value of the property with respect to which the taxed is assessed. Example: percentage tax

TAXES

Classification of TaxesAs to who bears the burden: Direct. Tax which is demanded from the person, who also shoulders the burden of the tax. Example: corporate or individual income taxesIndirect. Tax which is demanded from one person in the expectation and intention that he should indemnify himself at the expense of another.

TAXES

Classification of TaxesAs to graduation or rate: Proportional. Tax based on a fixed percentage of the amount of the property, income or other basis to be taxed. Example: all percentage taxProgressive or graduated. Tax based on the rate of which increases as the tax base or bracket increases. Example: income taxRegressive. Tax based on the rate of which decreases as the tax base or bracket increases.

TAXATIONTAXES

Tax Evasion and Tax AvoidanceTax EvasionIs the use by the taxpayer of illegal or fraudulent means to defeat or reduce the payment of a tax. It is punishable by law.Example: Deliberate failure to report taxable income or property.Deliberate reduction of income that has been received.

TAXATION

Tax Evasion and Tax AvoidanceTax AvoidanceIs the use by the taxpayer of legally permissible means or methods in order to avoid or reduce tax liability. It is not punishable by law.Example: A man may change the form of his property by putting his money into non-taxable securities.TAXES

Thank you

And

God bless

REFERENCE

Amadeo, K. (2015). Types of Inflation: 4 Different Types Plus More. Retrieved January 22, 2015, from About News: http://useconomy.about.com/od/inflation/tp/Types-of-Inflation.htmBeggs, J. (2015). Types of Unemployment. Retrieved January 23, 2015, from About.Com: http://economics.about.com/od/unemployment-category/a/Types-Of-Unemployment.htmLeitner, S. M. (2005). The Business Cycles in The Philippines. Philippine Management Review, Vol. 12, pp. 9-22.Liquigan, R. M., Baluyot, E. B., Cruz, J. B., & Fronda, J. G. (2010). Basic Economics with Agrarian Reform and Taxation. Malabon City: Mutya Publishing House, Inc.Microsoft Corporation. (2000). Encarta World English Dictionary. Berlin and Munich: Bloomsbury Publishing Plc.National Statistics Office. (2011, June 11). Summary Inflation Report Consumer Price Index (2000=100) : May 2011. Retrieved January 23, 2015, from Philippine Statistics Authority: http://web0.psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2000100-may-2011Villegas, B. M., & Abola, V. A. (2010). Basic Economics. Philippine: Center for Research and Communication Foundation, Inc.Wikipedia Foundation, Inc. (2014, October 24). Circular flow of income. Retrieved January 22, 2015, from Wikipedia, The free encyclopedia: http://en.wikipedia.org/wiki/Circular_flow_of_incomeWikipedia Foundation, Inc. (2015, January 14). Wikipedia, The free encyclopedia. Retrieved January 22, 2015, from Consumer price index: http://en.wikipedia.org/wiki/Consumer_price_index