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Need to summarize after class so he may ask in the next leson and the news of economy
OUTCOME different from OUTPUT
OUTPUT: the products/ service ex: FTU degree
OUTCOME: impact the way the product consumed ex: U may use the degree in a
good/bad way
Economy measures the impact
 The econ problem : limited input, unlimited needs -> produce more
 Solution:
 the market (supply & demand) A.Smith invisible hand: let the market do, no
intervention, the buyers/sellers fl their own interest, buyers = opportunities, self-
love. PRICE: surplus and shortage explain price => the market will be efficient
ex: free covid vaccination purchase
trade-off: efficient & fairness(equity)
+ efficient: maximize producer surplus & consumer surplus, produce more with
less (more product, less input)
+ fairness: rich-poor gap

Ex: Vietnamese gov lock-down -> bye efficiency -> protect citizens
Donald Trump choose efficiency
 State: when the state influence -> problem: shortage as gov cannot measure the
needs of all citizens -> BLACK MARKET

Aggregate: the sum of individuals consumption

GDP (gross domestic product): the size of econ,
+ primary sector: agriculture, secondary sector: industry -> vn is moving from agri to
ind., from cheap labor country -> efficient;
+ tertiary sector: service (edu, bank, …),
+ quaternary: G (Google) A (Amazon) F (Facebook) A (Apple) M (Microsoft), grab, uber
-> tech make business in IT, the winner is the one who share info, users provide data to
tech business and they use ur data to make money
In socialist country like Vietnam, ppl keep secret, GAFAN have to compete with Chinese,
China: Amazon vs Alibaba, Fb vs Weibo, Apple vs Huawei,…
 Mae the sum of econ sectors -> the size of econ
Inflation:
- Def: An increase in the overall level of prices in the econ
- USA & Eu print too much money bc of debt (resulted from war & bank failure,
print money to rescue bank) even > GDP = > 100% gdp
- Vietnam 40% of GDP inflation resulted from lock-down, import gasoline, Ukraine
– Russia war, food
Other countries are in deflation:
- Def: The overall levels of prices go down
- Ex: Japan price goes down -> produce less -> lower salary -> consume less
Why? Japan is aging
+ Grey population, countryside is ghost city -> less consumption
+ why Japan is aging: cult: the women stop a career when they have family ->
today women want independent life => number of children decreased
+ Japan is open to Chinese
DISINFLATION:
- Def: Inflation is still positive but the rate is decreasing = inflation – 1%
 Disinflation explain why Vietnam is efficient, stay away from deflation
HYPERINFLATION
- Venezuela, Zimbawe
- Inflation with many many zeros, ppl don’t trust currency, they exchange, toilet
paper is more valuable than currency n become luxury
STAGFLATION
- GDP doesn’t increase (=const) n have inflation (6 – 10%)
- GDP is flat, price goes up but we don’t produce more
- Ex: 1975 – 1979 in US n Europe not in Vietnam
UNEMPLOYMENT
Ppl looking for a job but w/o the job

Trade-off between unemployment and inflation

- Low unemployment -> higher inflation bc salary goes up
- High unemployment -> slary goes down -> lower inflation
 Salary explains the trade-off between unemployment and inflation
In Vietnam, unemployment rate is < 3%