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

Q: Suppose that people expect inflation to equal 3%, but in fact prices rise by 5%. Describe how this…

A: the question deals with rise in inflation in the economy which affects all the individual of the…

Q: Julia is a macroeconomist who works as a policy maker for a European government. She believes that…

A: NAIRU stands for Non-Accelerating Inflation Rate of Unemployment, and the idea is that if the…

Q: Explain the different intervention measures that are taken by the government to control inflation?…

A: Inflation is defined as a rise in the price of all products and services generated in the economy as…

Q: The table below reports the actual inflation rate from 2016 to 2020. Complete the table, assuming…

A:

Q: Q4: Select the best option and justify your answer with appropriate example:…

A: Unemployment refers to a situation when people are employable and actively seeking a job but are…

Q: Instructions The Mystery of Low Unemployment and Low Inflation: Background Information: The actual…

A: In an economy a rise in the general level of price is called as inflation rate.

Q: Which of the following reduces the effectiveness of inflation targeting as a means of reducing…

A: In an economy, inflation targeting refers to the Central Bank policies to make changes in the money…

Q: In 2017, the natural unemployment rate is 7 percent and the expected inflation rate is 3 percent.…

A: In short-run time intervals, there is a trade-off between inflation and unemployment rate while in…

Q: Define inflation, it's types, sources of inflation? What intervention measures are taken by the…

A: Inflation:- Inflation can be explained as the overall, steady rise in the price of items in an…

Q: In which of the following conditions is the inflation rate likely to rise and the unemployment rate…

A: Stagflation is when there is high inflation and the economic output(o/p) stagnates. The rate of…

Q: Explain the two costs of inflation from the perspective of economists

A: Meaning of Inflation: Inflation generally arises when there is an excessive increase in the level…

Q: The cost of inflation reduction is a large, permanent increase in unemployment. a.true  b.false

A: The Phillips curve represent the relationship between the inflation and the unemployment and there…

Q: 1. Describe the types of unemployment and their causes discussed in this module.  2. Describe the…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: Which of these refers to the uncontrollable and sharp increase in the rate of inflation? a. cost…

A: The economies around the world work upon the basis of the forces of the demand for the goods and…

Q: b. The change that takes place between 2018 and 2019 could be caused by (Click to select) v…

A: Please find the answer below.

Q: Inflation at lowest rate in 5 years Inflation rate (percent per year) In September, inflation in the…

A:

Q: rue or false questions. Need asap. I put the answers I got for each one.  5. A core inflation index…

A: Answer -

Q: One argument for some inflation is you are more likely to get a pay raise it makes prices in real…

A: When talking about inflation, it represents a rise in the general price of the basket of cost and…

Q: Q)d) Explain different types of inflation, what is the economic cost of unemployment? Explain

A: The economics as a study is based upon the idea that the resources which are present in the…

Q: Suppose that people expect inflation to equal 6 percent, but in fact, prices rise by 4 percent.…

A:

Q: According to the figure below, Rightward AS shifts cuse leftward Philips curve shifts PC. PC, 6. 1.…

A: Given Philips curve 1 and PC2

Q: Inflation and the quantity theory: Suppose velocity is constant, the growth rate of real GDP is 3%…

A: Dear Student, as this question contains multiple-subparts but we are only allowed to attempt first…

Q: Define inflation. Explain why inflations needs to be managed

A: The economics as a study is a vast area of study which is based upon the basic idea of scarcity of…

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: What are the costs of inflation? How high inflation affects the income distribution in the economy?

A: There are various costs related to inflation, the uncertainty and volatility may lead to reduction…

Q: Suppose that people expect inflation to be 3 percent but that, in fact, prices rise by 5 percent.…

A: Inflation is that the rate at that the worth of a currency is falling and, consequently, the final…

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: 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: For a very long time the country of Tofu has had an inflation rate of percent. Saddenly its…

A: Inflation refers to the continuous increase in general price level. Money supply and inflation are…

Q: In this Decision Point you learned a little about inflation and inflation expectations. Apply what…

A: Real wage is the wage rate adjusted for inflation. Nominal wage does not account for inflation.

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: Which of the following is true about inflation? a. Inflation affects everyone negatively b.…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Explain what we can understand by expected inflation, inflation due to an increase in aggregate…

A: Inflation in an economy is referred to be as a rise in the general price level of goods and…

Q: What type of inflation is caused by an increase in the purchasing power of people? a. Cost push b.…

A: Cost push inflation occurs from a fall in aggregate supply, which raises inflation but reduces…

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: For this question, assume that the expected rate of inflation is a function of past year's…

A: As the equation of Philips' curve is πt=πte-α(ut-un) where πt is the rate of inflation πte is the…

Q: What is the typical relationship between the behavior of inflation and unemployment? In your…

A: In the past, there has been an inverse link between inflation and unemployment. This connection,…

Q: Classify each of the following statements as positive or nomative.Expalin. a. Society faces a…

A: Positive statements are based on facts and cause-effect relationships while normative statements are…

Q: Inflation at lowest rate in 5 years Inflation rate (percent per year) In September, inflation in the…

A:

Q: Explain one harm associated with unexpected inflation that is not associated with expected…

A: Expected inflation is the inflation that economic agents expect in the future. Expected inflation…