Phillips curve Archives

Explain why we would expect wage inflation to be related to GDP, using the ‘business cycle’ model.

Posted on June 3, 2021 by Essay-Help

This question is based on data from UK selected European Union countries, saved in an Excel file on Moodle. For each student who answers this question, you will be assigned three countries. Answer all three parts of this question: a) For each country assigned to you, produce a line chart with two lines: unemployment, and […]

Distinguish between the short-run and the long-run in a macroeconomic analysis. Why is the relationship between unemployment and inflation different in the short-run and the long-run?

Posted on March 2, 2021 by Essay-Help

Unemployment and inflation are an economy’s two most important macroeconomic issues. The federal government’s fiscal policy and the Federal Reserve’s monetary policy try to maintain both a low unemployment rate around a natural rate and a low inflation rate around 2%. 1. Evaluate the historical relationship between unemployment and inflation. 2. Distinguish between the short-run […]

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Explain why we would expect wage inflation to be related to GDP, using the ‘business cycle’ model.

Distinguish between the short-run and the long-run in a macroeconomic analysis. Why is the relationship between unemployment and inflation different in the short-run and the long-run?