Question
Asked Dec 9, 2019
5 views

Changes in inflation and unemployment, if inflation falls from 12 to 6 percent and unemployment increases, will we see changes in both the longrun and shortrun Phillips curves or just one of the curves? Explain

check_circle

Expert Answer

Step 1

The Philips curve shows how a change in inflation is related to the unemployment rate.

Step 2

 In short run, the Phillips curve will be negatively sloped. That means, when there is an increase in the level of unemployment, then the inflation rate decr...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The economy is in a recession with high unemployment and low output. a)Draw a graph of aggregate dem...

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 subparts per ses...

question_answer

Q: Part D

A: Monopolist refers to a market situation where there is a single seller selling good having no close ...

question_answer

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar lik...

A: With the existence of a transaction cost of $90 which has to be split between the two that is $45 ea...

question_answer

Q: Suppose a wave of negative “ animal spirits” overruns the economy, and people become pessimistic abo...

A:  Keynes used the term “Animal Spirits” in his book, The General Theory of Employment, Interestand Mo...

question_answer

Q: 10:55 All iCloud December 2, 2019 at 10:55 AM A village has five residents, each of whom has an accu...

A: The total village income, if each villager decides to how to invest based on their self-interest, is...

question_answer

Q: Name 10 countries with the highest policy rate and the impact of the policy rate on their economies

A: The countries having the highest policy rates as of 2019 are listed in the table

question_answer

Q: a. What is the main constraint of a monopoly?    b. Consider the company Luxottica which is responsi...

A: a. The main constraints in a monopoly are the barriers to entry that are sometimes due to some natur...

question_answer

Q: "An annuity provides for 15 consecutive end-of-year payments of $73,000 in actual dollars. The gener...

A: Since the annuity is provided for 15 years and end of payments is $73000 in actual dollars, with gen...

question_answer

Q: how do i do 2.5

A: When the Potential GDP exceeds the real GDP (here, 15.4T > 15.3T), it results in a deflationary g...