Which of the following is the most correct statement about the relationship between inflation and unemployment? Group of answer choices In the short run, falling inflation is associated with rising unemployment. In the long run, falling inflation is associated with rising unemployment. In the long run, falling inflation is associated with falling unemployment. In the short run, falling inflation is associated with falling unemployment. Next

Which of the following is the most correct statement about the relationship between inflation and unemployment? Group of answer choices In the short run, falling inflation is associated with rising unemployment. In the long run, falling inflation is associated with rising unemployment. In the long run, falling inflation is associated with falling unemployment. In the short run, falling inflation is associated with falling unemployment. Next

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

which of the following is true Select one: a. When the actual rate of unemployment is low than natural rate, the inflation rate decreases b. natural rate of unemployment is that rate of unemployment required to keep the inflation rate constant c. When the actual rate of unemployment is higher than natural rate, the inflation rate increases d. the natural rate can never be the non-accelerating inflation rate of unemployment
Suppose that people expect inflation to equal 5 percent, but in fact, prices rise by 7 percent. Which of the following groups or individuals are hurt by this unexpectedly high inflation rate? Check all that apply. The government A union worker in the second year of a labor contract A homeowner with a fixed-rate mortgage A college that has invested some of its endowment in government bonds that are not indexed Treasury bonds
Because of global warming, Winterland got flooded frequently. Every time it gets flooded, the corn crops that they’re planting are destroyed completely. What is the effect on the short run tradeoff between inflation and unemployment, illustrate it!?
Consider the nature of unemployment and inflation and predict whether or not they should have some sort of relation with each other. Explain why you expect that relation to hold true.
4.) There are 80 million citizens in an economy. 45 million people are in the labor force and 1.8 million are unemployed.a) Calculate the unemployment rate.b) The natural rate of unemployment is 5%. How will the inflation rate change?c) Due to the progress of digitalization, the natural rate of unemployment decreases to 3.5% in the next year. However, the actual unemployment rate initially remains constant due to other effects. How does the inflation rate change?
The next note that changes in oil prices can affect the inflation-unemployment outcome. Explain what effect changes in oil prices may have on these two variables.
Which of the following economic changes are consistent with cost-push inflation? (More than one may apply) A. An increase in the price level B. A sudden and sharp decline in the quantity of money issued by the central bank C. Rising unemployment
In the fall of 2007, most economists felt that the a. inflation rate was above the natural rate. b. unemployment was at the natural rate. c. inflation rate was below the natural rate. d. unemployment rate was below the natural rate [dont give chatgpt answer i will upvote and other wise downvote]
Which of the following is the positive impact of inflation? A) Inflation causes the real value of saving for a saving person to eroded. B) Inflation makes debtors pay less in real return. C) Fixed-income people have the same income but a high cost of living. D) lender will not have the option to earn interest.
With respect to the concept of inflation, it is correct to say that ________. options: A) inflation increases the purchasing power of consumer dollars. B) inflation and deflation are really almost synonymous in practice. C) the consumer price index is one way to measure inflation. D) inflation occurs when the amount of money taken out of the economy exceeds the amount of money put into the economy. E) inflation occurs when people have more money to spend as the quantity of goods available increases.
Inflation is always present, to some degree, in economic systems. (a) Define inflation; (b) explain the difficulties of measuring the current rate of inflation; and (c) explain the differences between “normal” and “destructive” levels of inflation—mentioning hyperinflation.
Q.3.1In a country with a population of 100 million people there are 20 million children under the age of 15 years, 50 million employed, 27 million unemployed and 3 million full time students. Calculate the unemployment rate Q.3.2 Explain, with the aid of a graph, the demand‐pull inflation