Discuss the short-run tradeoff between inflation and unemployment.

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: could policy makers achieve a permanently lower level of unemployment if they were prepared to…

A: The Philips curve depicts the relationship between the inflation and unemployment rates.  The…

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: How can inflation create revenues for the government, exemplify the dynamics of this process?

A: The inflation is the rise in the price level of goods and services in the economy. This can happen…

Q: Using two AD/AS diagrams, explain cost-push and demand-pull inflation.

A: Inflation can be divided into two types of categories: 1. Demand-Pull Inflation >Inflation that…

Q: What is Inflation? How it is measured? What Fiscal and Monetary policies are generally adopted to…

A: Answer- Need to find- What is Inflation? How it is measured? What Fiscal and Monetary policies are…

Q: Which of the following economic changes are consistent with demand -pull inflation ? Check all that…

A: Demand pull inflation or excess demand inflation takes place when aggregate demand is rising while…

Q: Explain why a sudden, large burst of inflation could lead to a recession?

A: Inflation is the continuous rise in the price level of commodities in a nation over a period of…

Q: should the government emphasize full employment, and should the central banks prioritize…

A: Unemployment refers to people who are employable and actively looking for work but can't find one.…

Q: Discuss the economic consequences of inflation. How far can monetary measures control inflation?

A: The normal inflation rate is good for the economy because it helps to boost the economy but high…

Q: the article discusses the balance between inflationary pressures and other economic tensions. What…

A: ‘Inflation’ refers to an increase(↑) in the ‘general ‘Price(P) level’’. It occurs when ‘money…

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: The situation that depicts a general rise in the level of prices of goods and services in the…

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: If actual inflation exceeds anticipated inflation, who will lose purchasing power and who will gain?…

A: Actual inflation is the rate of inflation measured by the consumer price index and it is unexpected,…

Q: What sort of event could lead to a simultaneous decrease in both inflation rate and the unemployment…

A: Inflation is defined because the rate at which prices rise over time. Inflation is sometimes defined…

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: Describe the fiscal and monetary measures that are normally taken to curb inflation.

A: FISCAL MEASURES 1- The two main important tool of fiscal measures are revenue an dtaxes. 2- To…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate?

A: The consumer price index is used in measuring the price level. The consumer price index converts the…

Q: Which of the following is the most correct statement about the relationship between inflation and…

A: The Phillips Curve shows that tehre exists an inverse relationship between inflation and…

Q: What could be a real world example that explains the difference between creeping inflation,…

A: Creeping inflation can be controlled,it is under 5%. Galloping inflation can also be controlled,it…

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: Drought in South Africa destroyed farm crops and drive up theprice of food. What is the effect on…

A: The destruction of crops means the availability or the supply of food will fall so there will be a…

Q: when the economy approaches fall employment why does demand pull inflation become a problem?

A: Full employment is a level of output at which aggregate demand is equal to the aggregate output.…

Q: If, over time, wages and salaries on average rise at least as fast as inflation, should people have…

A: Inflation means rise in general price level.

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

A: The Phillips curve basically depicts the relationship between inflation and unemployment, and the…

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: Suppose that the economy is experiencing a high unemployment rate and at the same time, inflation is…

A: Stagflation is the situation where there is a higher inflation along with the lower economic growth…

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: Demand-pull inflation can develop when...

A: Demand is the total quantity of commodities for which the customers are ready to pay various…

Q: What unique factors in the 1970s era caused widespread inflation?

A: According to the Phillips curve , there exists an inverse relationship between inflation and…

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: What is Inflation? How it is measured? What Fiscal and Monetary policies are generally adopted to…

A: Inflation is the continuous rise in prices due to increased money supply in the market.

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.