(c) Why is the unemployment rate in labour market equilibrium also called the"inflation-stabilizing rate of unemployment"?(d)Which is better for the economy, when the rate of inflation is 3% or 0%?

Labor market equilibrium occurs at the point where the labor demand is equal to the labor supply for…

(c) Why is the unemployment "inflation-stabilizing rate of rate in labour market equilibrium also called the unemployment"? (d) Which is better for the economy, when the rate of inflation is 3% or 0%?

(c) Why is the unemployment "inflation-stabilizing rate of rate in labour market equilibrium also called the unemployment"? (d) Which is better for the economy, when the rate of inflation is 3% or 0%?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 22RQ: What term describes the remaining level of unemployment that occurs even when the economy is...

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(c) Why is the unemployment rate in labour market equilibrium also called the
"inflation-stabilizing rate of unemployment"?
(d)
Which is better for the economy, when the rate of inflation is 3% or 0%?

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