pythoncours.py

Created on February 19, 2025
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The 3 beakdowns of GDP: 
GDP - INDIRECT TAXES + SUBSIDIES = GVA = GDI
By Expenditure : Y=C+G+I+(X−IM) = GDP 
By Output (GVA) : OUTPUT=TOTAL VALUE OF SALES−INTERMEDIATE CONSUMPTION
By Income (GDI) : RENT + INTEREST + PROFITS + STATISTICAL ADJUSTMENT + WAGES

Demand-pull inflation : positive demande shock
Cost-push inflation : negative demande shock 
Effet de l’inflation sur les taux d’intérêts : 
CT : les taux d’intérêt baissent
LT : les taux d’intérêt augmentent

Two Types of Actions of CB (inflation)
A) Expansionary (Increasing the Money Supply):
The Central Bank buys bonds from commercial banks. 
It lends money to banks.
B) Contractionary (Reducing the Money Supply):
The Central Bank sells bonds to banks. 
It does not renew certain loans.

Three Types of Unemployment:
Frictional Unemployment (= transition between jobs)
Structural Unemployment (= lack of appropriate skills)
Cyclical Unemployment (= caused by economic crises)
FU + SU = Natural unemployment

Output Gap = Difference Between the Observed GDP and 
Its Maximum Sustainable Level (Potential GDP)
Output Gap = Y - Yn = Real GDP – Potential GDP
If Y > Yn → The economy is overheating (inflation, excessive demand).
Risk: Inflation rises because everyone is spending too much.
If Y < Yn → The economy is underperforming (high unemployment, economic crisis).
Risk: Less consumption, slower growth.