1) When will a tradeoff occur between inflation and unemployment? (hint: think about the Philips curve)...
Homework Answers
Q1
ANswer
Option a
short-run
The inflation and unemployment are inversely related in the short
run and in the long run, employment is fixed at full
employment.
====
Q2
Answer
Option b
Unemployment
unemployment is zero but employment is not like all the human and
other resources changes in the long run and all will be
employed.
Add Answer to:
1)
When will a tradeoff occur between inflation and unemployment?
(hint: think about the Philips curve)...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
Consider the following Philips Curve. ? = Eπ − 0.6 (?−0.05) A) Interpret the Philips Curve....
Consider the following Philips Curve. ? = Eπ − 0.6 (?−0.05) A) Interpret the Philips Curve. ( 5 points) B) Assume that Eπ=0.02. Draw the graph of the Philips Curve and call it Figure 1. What is the slope of the Graph? What are the long-run unemployment rate and the long-run inflation rate? ( 5 points) C) Is there any possibility that a government can decrease the inflation rate without any change in the unemployment rate? If yes, how? Explain...
5. Consider the relationship between inflation, output, and unemployment. a. Think about the economy in the...
5. Consider the relationship between inflation, output, and unemployment. a. Think about the economy in the long run. i. In the long run, what determines unemployment? ii. In the long run, what determines output (GDP)? iii. In the long run, what determines inflation? iv. In the long run, is there a tradeoff between inflation and unemployment? Explain why or why not
Consider the relationship between inflation, output, and unemployment. Think about the economy in the long run....
Consider the relationship between inflation, output, and unemployment. Think about the economy in the long run. In the long run, what determines unemployment? (2 points) In the long run, what determines output (GDP)? (2 points) In the long run, what determines inflation? (2 points) In the long run, is there a tradeoff between inflation and unemployment? Explain why or why not (3 points).
Explain the tradeoff between inflation and unemployment in the short-run and the long-run.
Explain the tradeoff between inflation and unemployment in the short-run and the long-run.
The tradeoff between inflation and unemployment does not exist in the long run because people will...
The tradeoff between inflation and unemployment does not exist in the long run because people will adjust their expectations so that expected inflation: A. exceeds the inflation rate B. equals the inflation rate of the previous year. C. equals the inflation rate. D. is below the inflation rate.
Detailed explanations please! I am confused Other things the same, an increase in the expected price...
Detailed explanations please! I am confused
Other things the same, an increase in the expected price level shifts a short-run aggregate supply right b. short-run aggregate supply left c. aggregate-demand right. d. aggregated-demand left Figure 35-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregato-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate Phallips Curve SRAS 30 \B 130 15 115 High AD :Low AD 0% 10% 2 Refer to Figure 35-1. The curve...
1. Which of the following best describes the relationship between inflation and unemployment? A) As inflation...
1. Which of the following best describes the relationship between inflation and unemployment? A) As inflation increases, unemployment will always increase B) It includes periods in which there is a trade-off between the two, but is overall more nuanced and varied C) There is never a trade-off between inflation and unemployment D) It adheres to the Phillips curve trade-off in both the short and long run time periods 2. A large decrease in government purchases due to a reduction in...
The short-run trade-off between the rate of inflation and the unemployment rate is best represented by:
The short-run trade-off between the rate of inflation and the unemployment rate is best represented by: A. the long-run aggregate supply curve. B. the aggregate demand curve. C. the short-run aggregate supply curve. D. the Phillips curve.
Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation +.2 -4*Unemployment Rate...
Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation +.2 -4*Unemployment Rate Assume that initially, people expect zero inflation. Draw the short run Phillips Curve and the long run Phillips Curve on a graph On the graph, represent what would happen in the short run if the government decided to run 4% inflation (setting inflation =0.04). . On the graph, represent what would happen in the long run if the government decided to run 4% inflation.
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
Detailed explanations please! I am confused
Other things the same, an increase in the expected price level shifts a short-run aggregate supply right b. short-run aggregate supply left c. aggregate-demand right. d. aggregated-demand left Figure 35-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregato-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate Phallips Curve SRAS 30 \B 130 15 115 High AD :Low AD 0% 10% 2 Refer to Figure 35-1. The curve...
Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation +.2 -4*Unemployment Rate Assume that initially, people expect zero inflation. Draw the short run Phillips Curve and the long run Phillips Curve on a graph On the graph, represent what would happen in the short run if the government decided to run 4% inflation (setting inflation =0.04). . On the graph, represent what would happen in the long run if the government decided to run 4% inflation.
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