The Actual inflation rate minus the ideal inflation rate is known as the inflation gap.
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The actual inflation rate minus the ideal inflation rate is known as the natural rate. the...
When the output gap is negative, the actual unemployment rate is: O below the natural rate. O equal to the natural rate. Oabove the natural rate. The actual and natural unemployment rates are not related to the output gap.
3. Discuss the relationship between the natural rate of unemployment, Un, and the Phillips curve, 1lt – itt-1 = -a(ut – Un); and explain why the natural rate of unemployment is also known as the non-accelerating inflation rate of unemployment (NAIRU). Hints: The central assumption used to derive the Phillips curve, Tet – 1lt-1 = -a(Ut – Un), was that tę = Tt-1, where tę represents expected inflation. What does this mean? Assume that Ut = Un. What happens to...
If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 10% when in fact it was 12%, it might cause O A. consumers to spend more than they intended, because the Bank of Canada misled them about the unemployment rate. O B. a reduction in the natural rate of unemployment, because it would be allowing inflation to occur. O c. a one-time reduction in unemployment, because of a one-time increase in the money...
If the actual unemployment rate is below the natural rate of unemployment, it would be expected that: Group of answer choices the natural rate of unemployment would fall the Phillips curve would shift to the left the rate of inflation would increase wages would fall
The natural rate of unemployment is also called: A. accelerating deflation rate of unemployment. B. accelerating inflation rate of unemployment. C. nonminusaccelerating inflation rate of unemployment. D. none of the above.
12 ay if a country's natural unemployment rate is 5 percent and its actual unemployment rate is 6.5 percent, what is its cyclical unemployment rate? percent Instructions: Enter the value for the output gap as an absolute number b) According to Okun's law, this country would have a recessionary output gap of percent. 0123:17
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would result in a change in any security return of __ BINFLATION. O 9.2 0 -3.2 O 3.0 O 6.2 O 3.2
The real interest rate A. is equal to the nominal interest rate minus the inflation rate. B. is the interest rate that adjusts GDP for changes in prices. C. is equal to the inflation rate minus the nominal interest rate. D. is the interest rate that is quoted on a financial debt and a firm's assets.
a) If a country's natural unemployment rate is 5 percent and its actual unemployment rate is 3.5 percent, what is its cyclical unemployment rate? percent Instructions: Enter the value for the output gap as an absolute number. b) According to Okun's law, this country would have (Click to select) an expansionary a recessionary output gap of percent.
Question 28 8 pts Natural rate of Potential Real GDP unemployment Actual rate of unemployment Negative GDP Gap Absolute loss of output 200 16 12 500 5 9 400 6 11 380 9.3 Refer to the data in the above table and use Okun's law to determine the size of GDP gap in percentage-point terms as well as how much output is being forgone.