Assume that expected inflation is based on the following: n = 0-1. An increase in 8 will cause a. a reduction in the natural rate of unemployment. b. an increase in the natural rate of unemployment. c. inflation in period t to be more responsive to changes in unemployment in period t. d. None of the other answers is correct. e. no change in the natural rate of unemployment.
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- which of the following is true Select one: a. When the actual rate of unemployment is low than natural rate, the inflation rate decreases b. natural rate of unemployment is that rate of unemployment required to keep the inflation rate constant c. When the actual rate of unemployment is higher than natural rate, the inflation rate increases d. the natural rate can never be the non-accelerating inflation rate of unemploymentA Phillip's curve is given by = + 10% - 2u, where = ₁-₁ and also T₁-1 = 2%. Calculate the natural rate of unemployment. Imagine further that the economy at time t is at the natural rate of unemployment. Calculate the inflation rate at time t. Imagine further that the unemployment rate at time t+1 is 1 percentage point lower then at time t. Calculate the inflation rate at time t+1.If the inflation rate is positive, the price level in an economy is Select one: A. falling slowly. B. falling rapidly. C. constant. D. zero. E. rising.
- At full employment, the expected inflation rate is ... A. higher than the inflation rate B. equal to the inflation rate C. lower than the inflation rate D. unknown E. unrelated to the inflation rateA Phillip's curve is given by π = n + 10% - 2u, where = π-1 and also Tt-1 = 2%. Calculate the natural rate of unemployment. Imagine further that the economy at time t is at the natural rate of unemployment. Calculate the inflation rate at time t. Imagine further that the unemployment rate at time t+1 is 1 percentage point lower then at time t. Calculate the inflation rate at time t+1.In theory, inflation not only ______ the value of consumers' money over time, but it also increases the ____ of producers over time. a.Decreases, wages b.Increases, interest rates c.Decreases, unemployment d.Increases, real GDP
- Q)d) Explain different types of inflation, what is the economic cost of unemployment? Explain Not copy pasteExpectations of inflation are ____________ effective than/as actual inflation in ____________ production costs. a) less; increasing b) less; decreasing c) as; increasing d) as; decreasing e) more; increasing1) Whether you gain or lose during a period of inflation depends on: a) how the price increases affect government purchases of goods. b) whether the economy is expanding or contracting. c) whether you save or not. d) whether your income rises faster or slower than prices of the things you buy. 2) A real wage that does not keep pace with inflation implies: a) a decrease in purchasing power. b) a decrease in nominal wages. c) a decrease in nominal wages after inflation. d) an increase in the inflation adjusted real wage.
- 2. Suppose the frictional unemployment rate is 7%, the cyclical unemployment rate is 4% and the structural unemployment rate is 5%, calculate the natural rate of unemployment. 3. Evaluate the effects of anticipated and unanticipated inflation.Maps Paraphrasing Tool ... New Tab ent - Sem 2 2022.pdf 2 / 3 G Report Grammarly 100% + + » What is the current environment in the USA and Australia? b) Define unemployment and its measurement. What is the current environment in the USA and Australia? c) Define inflation and its measurement. What is the current environment in the USA and Australia? Question 2 Assume that an economy is initially operating at the natural rate of output (full employment output). Use the AD-AS model to illustrate graphically the effects on price and output of a increase in government spending and an increase in the cash rate. Explain your assumptions with respect to the range of aggregate supply of your analysis. Question 3 Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank's action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should…Oil prices are on track to reach $100 a barrel this month for the first time in 2023 after surging by almost 30% sinceJune, after Russian and Saudi Arabian production cuts and rising demand from China. With many industries being heavily reliant on energy and transportation, what type of inflation would this leadto in South Africa?A. Demand-pull inflationB. Cost-push inflationC. StagflationD. Hyperinflation