Lessons 29–30 · 2 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
30
Review of Chapter V
Textbook: pp. 130–132
GoalReview of Chapter V: consolidate terms, formulas and state measures on inflation and unemployment, and solve test and calculation items.
New words
money mass · pul massasiinflation rate · inflatsiya darajasiunemployment rate · ishsizlik darajasilabour force · ishchi kuchi
Explanation
Chapter V is about prices and the labour market. Prices: M · V = P · Q; if money mass grows while the volume of goods is unchanged, prices rise; the consumer price index comes from the cost of a basket, inflation rate = (CPI₁ − CPI₀) : CPI₀ · 100%; kinds — creeping, galloping, hyperinflation; measures — reducing excess money mass and stimulating production. Labour: the wage forms from demand and supply and depends on skill, risk and profit; unemployment rate = unemployed : labour force · 100%; types — frictional, seasonal, structural, cyclical; at full employment only frictional and structural unemployment remain. State employment services and trade unions protect employees. When reviewing, explain each formula in your own words and make a habit of checking for sense, for example, the unemployment rate cannot exceed 100%.
Worked examples
A basket rose from 240 000 to 264 000 so‘m: inflation = (264 000 − 240 000) : 240 000 · 100% = 10%. This is the upper limit of creeping inflation. If the unemployed number 800 000 and the labour force is 16 000 000, the unemployment rate is 800 000 : 16 000 000 · 100% = 5%.
Test: “Money mass rose; velocity and quantity of goods did not change. Result?” M · V = P · Q: the left side grew and since Q is unchanged, P rises. Answer — prices rise.
Class activity
“Two formulas — two translations”. Pairs write the formulas for inflation and unemployment rates, explain each with an everyday example (a shop price, a graduate seeking a job), then make two conditional problems and give them to a neighbour to solve.
Practice
1
Match the terms: hyperinflation, the unemployed, trade union.
hyperinflation — extreme rise of prices; the unemployed — able-bodied people who want but cannot find work; trade union — a public organisation defending employees’ interests
2
M = 400, V = 3, Q = 60. What is P?
20
3
The index rose from 240 to 264. What is the inflation in per cent?
10
4
Why can technology that reduces manual labour in agriculture cause structural unemployment?
Old jobs shrink while new ones need other skills; people stay unemployed until they adapt.