Multipliers are widely understood, especially in the case of consumption, where a positive feedback between income and consumption can make the impact of a shock larger. Throughout my discussion, I will often refer to positive and negative feedback effects, so it may be worth being explicit about these terms.
Inflation, employment and productivity The 12-month moving average inflation rate fell from 8.6% at the end of 2008 to 3.1% at the end of 2009, reflecting in large measure the return to normalcy of commodity prices during 2008. Slumping domestic demand resulted in a higher unemployment rate, estimated at over 10% at the end of 2009, compared with 8.1% a year earlier.