Impact of inflation on unemployment (in detail)
Answers
Answered by
2
Explanation:
As inflation accelerates, workers may supply labor in the short term because of higher wages – leading to a decline in the unemployment rate.Since inflation has no impact on the unemployment rate in the long term, the long-run Phillips curve morphs into a vertical line at the natural rate of unemployment.
Hope it is helpful to you
Mark as brainliest
Similar questions