the relationship between the inflation rate and the unemployement rate related micro or macroeconomics

Q: Explain cost plus inflation verbally in graphically using aggregate demand in aggregate supply…

A: A reduction in aggregate supply or a change to the left causes cost-push inflation. This transition…

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: Determine whether there is a relationship between the unemployment rate and inflation rate.

A: Inflation rate gives the percentage change in price level over a period of time.Unemployment rate is…

Q: Which of the following are CORRECT statements regarding inflation and real variables? Select ONLY…

A: The 1st and the 2nd statement in the options given in question are correct answers.

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: Which statement is CORRECT? The Consumer Price Index is considered the best measure of long-term,…

A: In an economy, economic measures use specfiic information to calculate the value of specfic economic…

Q: What is the role of inflationary expectation in determining the level of unemployment in a country.…

A: Inflation is defined as decline in the Purchasing Power of a currency in an economy over a given…

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: Which policy measure may reduce demand-pull inflation but increase cost-push inflation? Pick a,b,c,…

A: Demand-pull inflation is the growing price pressure that comes with a supply shortage, which…

Q: Using diagrammatic illustrations where necessary, write brief notes on the following concepts. i.…

A: Gross domestic product refers to the total amount of all the goods, and services produced in an…

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: Inflation is a general rise in the level of prices; however, our measures of inflation collect price…

A: Inflation is the rate of increase in prices over a given period of time. It is a broad measure such…

Q: Choose the statement that does not describe Microeconomics. a. The effect of an increase in the Tax…

A: In macroeconomics, we study the decision of individual households or a group of a company or firm.…

Q: A stable inflation rate is necessary to forecast business activities and make better investment…

A: inflation rate measures the rate at which inflation rises in an economy with respect to time.

Q: Which of the following questions are macroeconomic questions?     A. What factors determine the…

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Inflation is defined as a sustained increase in the price level.   is this true or false?

A: Inflation:The sustained rise in the general price level of a basket goods and services for the…

Q: Describe the inflation rate trend in the inflation rate graph provided.

A: Inflation refers to an increase in the prices of goods and services in an economy over a period of…

Q: Inflation is a negative macroeconomic phenomenon that distorts the economic behaviour of both…

A: CPI (consumer price index) gives the changes in the price level for a specified basket of consumer…

Q: Inflation is one macroeconomic phenomenon that policy makers watch closely and intervene to bring it…

A: ANSWEE   Disinflation occurs when there is deep recession leading to a sustained fall in demand .

Q: Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is…

A: Business cycle refers to ups and downs in the real GDP due to changes in economic activities.

Q: Cost-push inflation may be caused by:

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

Q: Suppose the inflation rate remains relatively constantwhile output decreases and the unemployment…

A: Meaning of Aggregate Demand Function: Aggregate demand function can be defined as the maximum…

Q: Show and explain the existence of involuntary unemployment in the labor market by using the…

A: The Efficiency Wage Theory postulates that firms can increase productivity by increasing wages. This…

Q: What is meant by the substitution effect when measuring inflation and does the substitution effect…

A: Answer: Substitution effect: when the price of a good increases the consumers find a cheaper…

Q: Which among the following is a tool is used by the government is helping the poor class in the time…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: If inflation rises unexpectedly by 5% which of the following economic actors are helped by the…

A: Inflation refers to the general increase in the price level in the economy and increases in the…

Q: Economists widely agree that the Consumer Price Index understates the true U.S. inflation rate.…

A: Consumer price index does not include imported goods.

Q: Which is the correct order once the AD or SRAS has shifted to start the inflation process? a.…

A: A shift of the AD or SRAS has shifted to start the inflation implies a rightward shift of the…

Q: Explain (define) the terms given below with appropriate examples. a) Inflation b) Deflation  c)…

A: a) Inflation: Inflation is the rate of rising prices over a given period of time. In general words,…

Q: analyse the impact that the increasing number of social grants may have on the unemployment rate

A: Social grants are set up to help improve ways of life in the public arena and are given to…

Q: Full-time Employed 80 Part-time Employed 25 Unemployed 15 Discouraged Workers Members of Underground…

A: The measure that depicts a rise in levels of price of goods and services in an economy during a…

Q: Mark Lai, a student of agricultural science in the developing country Mikatra, notes that the demand…

A: Mark Lai is a student of agriculture science in Mikarta, who notes that the demand for rice has…

Q:  When wages are fixed by contract, inflation reduces a.    nominal wages;…

A: The real wage shows that purchasing power of income than the actual money received. The nominal wage…

Q: write brief notes on the following concepts. i. Demand-pull and cost-push inflation  ii. Consumer…

A: Note: Since you have asked multiple questions, we will solve the first 3 question for you. If you…

Q: Which of the following is NOT true about consequences of high unanticipated inflation    Select…

A: Unanticipated inflation: It means that there is an increase at a faster pace rather than expected.…

Q: A key difference between the original Keynesian and New Keynesian approaches to the labour market ,…

A: The Keynesian model would be the earlier model in which Keynesian attempts to explain the aggregate…