e. There is a tradeoff between inflation and unemploymet in the short run.

Q: Changes in oil prices can affect the inflation-unemployment outcome, explain what effect changes in…

A: Change in oil prices can affect the inflation-unemployment outcome. Let us assume that oil prices…

Q: Explain the negative effects of high inflation

A: Please find the answer below.   INFLATION: Inflation is the rate of increase in prices over a given…

Q: compare between demand pull and cost push inflation

A: Inflation: It is the situation when there is a rise in the price of goods and services that leads to…

Q: the demand‐pull inflation

A: Answer to the question is as follows :

Q: the relationship between the inflation rate and the unemployement rate related micro or…

A: Microeconomics generally studies the behaviour of firms and individuals in decision making with…

Q: What is demand pull and cost push inflation in economics?

A: Demand pull inflation in simple words we can say that it is the inflation that generally describe…

Q: A significant rise in the price of oil causes:   Question 3 options:   a)  demand-pull inflation…

A: Demand pull Inflation: When the  Inflation in the economy is caused because of the excessive…

Q: Explain the trade-off between unemployment and inflation by citing a concrete example.

A: General increase in price level for goods and services in the economy is known as inflation.…

Q: There are many kinds of costs of inflation to a society. Explain THREE such costs of inflation which…

A: Inflation is a systematic measure of the rate at which the price level of a basket of selected goods…

Q: If a nation has high and persistent inflation, themost likely explanation isa. the central bank…

A: Inflation is a macroeconomic phenomenon characterized by the persistent rise in the price level of…

Q: The following are causes of inflation EXCEPT: a. Money Supply b. Demand c. Rising income d.…

A: Since you have posted multiple questions as per the guidelines we can solve only first question per…

Q: The text notes that changes in oil prices can affect the inflation-unemployment outcome. Explain…

A: Fluctuation in oil prices have a direct impact on inflation. Generally the rise in prices of oil and…

Q: To introduce the effect of inflation into our economic analysis, what do we need to define?

A: To introduce the effect of inflation into our economic analysis, we need to define various terms…

Q: Cost-push inflation may be caused by:

A: Cost push inflation is one of the major type of inflation.

Q: as the slope of the aggregate supply curve increase, this indicates that; a. inflation will be less…

A: When slope of aggregate supply curve increases,economy would be moving towards potential GDP.

Q: Why is there no long-run trade-off between unemployment and inflation?

A: Solution: Trade-off: It refers to an act of balancing between two opposing situation or thing.…

Q: Q1 a) Briefly explain why the discount factor could credibly be interpreted as the probability of…

A: As there are multiple question, the first question would be answered, to get answers to the rest of…

Q: Why might the Coronavirus pandemic cause inflation?

A: Inflation is characterized by a situation when there is a continuous rise in prices, indicating a…

Q: Given the resources within the economy acme Pencil Company can produce one million pencils a year.…

A: The theory of Keynesian economics that explains the result of an imbalance in aggregate supply (AS)…

Q: High and unexpected inflation has a greater cost

A: Inflation is always worse for the normal people.

Q: When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to…

A: Inflation can be defined as a rise in the overall price of all products and services in an economy…

Q: Explain Inflation and give an example?

A: Inflation refers to an increase in the overall price level of goods and services in an economy in a…

Q: Both inflation and deflation can be dangerous. Based on your readings, provide historical examples,…

A: Inflation measures the rate at which prices in an economy rise during a given period.  Deflation…

Q: What are the types of inflation? Explain with the help of examples? According to macroeconomics

A: Inflation is defined as the price rise goods and services in the economy. These are of three types…

Q: Ongoing inflation does not automatically reducemost people’s incomes becausea. the tax code is fully…

A: The Expectations of the market participants regarding the future plays a vital role in determining…

Q: explain the difference between cost push and demand pull inflation using diagrams

A: Inflation happens when the price level of services and goods increases, leading to reduced…

Q: In the long run when governments attempt to target unemployment below the natural rate we can expect…

A: Answer - 1. Inflation - When government try to bring unemployment below " natural rate " . It must…

Q: A little bit of inflation is worse for society than a little bit of unemployment.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Inflation is always present, to some degree, in economic systems. (a) Define inflation; (b) explain…

A: a) Inflation refers to the falling purchasing power of a currency over a period of time. When the…

Q: If an economy is beyond its full employment, а. most likely inflation will decrease in a short run…

A: The long-run aggregate supply curve shows the potential output of the economy in the long run. It…

Q: Explain the pros and cons of inflation.

A: The nations tend to operate upon the basis of the expenditures which various entities do in the…

Q: What are 3 examples of theoretical causes of inflation in the short run?

A: The inflation is the rise in the overall price level in the economy.

Q: Under what conditions is inflation relatively insensitive to wages and unemployment??

A: The inflation is the rise in the aggregate price level. The wages are the returns to the labor and…

Q: The high cost of oil has caused an increase in the price of plastic. (Plastic is made from…

A: Cost-push expansion(inflation) happens when by and large overall price increment (inflate) because…

Q: Why should the government not try to make inflation zero?

A: Inflation is the rise in the overall level of prices in an economy.

Q: Which of the below statements IS NOT CORRECT about the term "inflation" or its effect,  as Charles…

A: The price of goods and services does not remain the same all the time. The prices can go up or down…

Q: Effect of inflation on demand and supply

A: The inflation is the rise in the aggregate price level. The inflation would result in the increase…

Q: Explain both demand-pull and cost-push inflation

A: Inflation is the rate of increase in the general price level in the economy over a period of time.…

Q: Give at least 2 reasons why "grade inflation" is observed in education

A: Grade inflation refers to situation where students are not acessed based on merit,their intelligence…

Q: Why does the “quality/new goods bias” arise if we calculate the inflation rate based on a fixed…

A: Inflation occurs when the price level of all goods and services in the economy experiences a…

Q: Indexation the automatic correction by law or contract of a dollar  amount for the effects of…

A: Organizations and governments use indexation as a mechanism or strategy to link pricing and asset…

Q: During the 1990s, price increases slowed down (inflation rate was declining). This situation is an…

A: The increase in the price causes the value of money to decline and decrease in the purchasing power…

Q: True or False, then justify your response with practical economic examples: Inflation is always…

A: Inflation refers to the general increase in the price of all the final goods and services produced…