What is the answer to this problem
Attachments:
Answers
Answered by
52
Answer:
According to NAIRU theory, expansionary economic policies will create only temporary decreases in unemployment as the economy will adjust to the natural rate. Moreover, when unemployment is below the natural rate, inflation will accelerate. When unemployment is above the natural rate, inflation will decelerate.
Answered by
1
Answer:
Underlying my discussion of the role of labor markets in the process of inflation is the hypothesis that an increase in aggregate demand raises employment and reduces unemployment. The economy then moves up and to the left along the Phillips curve and wages start to rise more rapidly.
Similar questions