ZuoTi.Pro
Question

econ homework

If actual inflation exceeds expected inflation is the unemployment rate above or below the natural rate? 

economy   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Natural rate of unemployment will determined by the long run philips curve. Since point m is beyond the natural rate hence unemployment is higher than natural rate of unemployment and inflation rate is lesa than the expected rate of inflation.

answered by: ANURANJAN SARSAM
0 0
Add a comment
Know the answer?
Add Answer to:
econ homework
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips...

    If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve, a. unemployment equals the natural rate and expected inflation equals actual inflation. b. unemployment is above the natural rate and expected inflation equals actual inflation. c. unemployment equals the natural rate and expected inflation is greater than actual inflation. d. None of the above is necessarily correct.

  • If the actual unemployment rate is below the natural rate of unemployment, it would be expected...

    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

  • ECON 1150 ch 17

    The following table shows selected data on unemployment and inflation in Canada between 1982 and 1986.YearUnemployment Rate (%)Inflation Rate (%)198211.010.8198312.05.9198411.34.3198510.64.019869.74.2The data for these five years have been plotted on the following graph for you. This graph will allow you to examine the relationship between unemployment and inflation during this period and solve the problems that follow.8.08.59.09.510.010.511.011.512.011.010.09.08.07.06.05.04.03.0INFLATION RATE (Percent)UNEMPLOYMENT RATE (Percent)The following graph shows the short-run Phillips curve for Canada in 1982. Shift the curve to illustrate what happened between 1982...

  • ECON 1150

    In the year 2023, aggregate demand and aggregate supply in the fictional country of Gurder are represented by the curves AD2023AD2023 and AS on the following graph.Suppose the natural rate of output in this economy is $6 trillion.On the following graph, use the green line (triangle symbol) to plot the long-run aggregate-supply (LRAS) curve for this economy.LRASOutcome C0246810121416108107106105104103102101100PRICE LEVELOUTPUT (Trillions of dollars)ADAADBAD2023ABASEconomists have forecast that if the government does nothing and the economy continues to grow at the current rate, aggregate demand...

  • macroeconomic

    ▪        Assume the economy has a natural rate of unemployment of 5%. Graphically illustrate when the actual inflation is 4% and expected inflation is 2%. What will happen to the economy when expected inflation adjust to the actual inflation in the long- run?

  • A Explain briefly why actual unemployment is never zero even when the economy is considered to...

    A Explain briefly why actual unemployment is never zero even when the economy is considered to be in a state of full employment. B why do economists and business investors expect inflation to accelerate when actual unemployment falls below the natural rate of unemployment (NAIRU)? C What is the current actual unemployment rate for the US economy? Do you think the current unemployment rate is less than, equal to or above NAIRU?Explain your answer.

  • 7) An increase in the price of oil will likely cause which of the following? A) increase the mark...

    7) An increase in the price of oil will likely cause which of the following? A) increase the markup in the Phillips curve equation B) increase the sum "m z" in the Phillips curve equation C) increase the natural rate of unemployment D) all of the above 8) Suppose the Phillips curve is represented by the following equation: -mt-1-0.2-2ut- Given this information, we know that the natural rate of unemployment in this economy is A) 1096. B) 20%. C) 6.5%....

  • Question 6 For this question, assume that the Phillips curve equation is represented by the following...

    Question 6 For this question, assume that the Phillips curve equation is represented by the following equation: m,- -1 = (m + Z)-aut . Which of the following will cause a reduction in the natural rate of unemployment? an increase in m an increase in expected inflation O an increase in z an increase in actual inflation O an increase in α Question 7 1 pts For this question, assume that the Phillips curve equation is represented by the following...

  • 3. All About the Natural Rate of Unemployment Answer the following questions. a. What do economists...

    3. All About the Natural Rate of Unemployment Answer the following questions. a. What do economists mean by the natural rate of unemployment? b. Describe three factors that can affect the natural rate of unemployment and indicate the impact of each on the value of the natural rate of unemployment in an economy. c. What can you deduce if the actual rate of unemployment exceeds the natural rate of unemployment?

  • 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.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT