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