Module 34

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12th grade

macroeconomics

phillips curve

14 veces realizada

Creada por

Zachary Foust

Estados Unidos

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Completar frases Module 34Versión en línea The Phillips Curve - Fill-in-the-Blank por Zachary Foust 1 AD Phillips down up along AS demand inflation oil movements supply negative demand Looking at historical data for Britain , the economist Alban W . H . found that when the unemployment rate was high , the wage rate tended to fall . Economists soon found a similar relationship between the unemployment rate and the rate of . The short - run Phillips curve represents the short - run relationship between the unemployment rate and the inflation rate . The Phillips curve is tied to the - model An increase in aggregate leads to a fall in the unemployment rate and an increase in the inflation rate . A decrease in aggregate leads to a rise in the unemployment rate and a fall in the inflation rate . Other things equal , increases and decreases in aggregate demand result in to the left and right the short - run Phillips curve . Changes in aggregate also affect the Phillips curve . Supply shocks , such as sudden changes in the price of , shift the short - run aggregate supply curve and the short - run Phillips curve . A negative supply shock shifts SRPC ( right ) , increasing the inflation rate and the unemployment rate . A positive supply shock shifts SRPC ( left ) , decreasing the inflation rate and the unemployment rate . 2 power workers expected experience downward upward The expected rate of inflation is the rate that employers and expect in the near future . Changes in the rate of inflation affect the short - run Phillips curve . Workers want a wage rate that takes into account future declines in the purchasing of earnings . An increase in expected inflation shifts the short - run Phillips curve ( rightward ) . A decrease in expected inflation shifts the short - run Phillips curve ( leftward ) . People base their expectations about inflation on . 3 short choice long In the - run , policymakers have a : they can choose to accept the price of high inflation in order to achieve low unemployment , or they can reject high inflation and pay the price of high unemployment . In the - run , it is not possible to achieve lower unemployment by accepting higher inflation . 4 long persistent matches change above high below A attempt to trade - off lower unemployment for higher inflation leads to accelerating inflation over time . To avoid accelerating inflation over time , the unemploment rate must be enough that the actual rate of inflation the expected rate of inflation . The unemployment rate at which inflation does not over time is known as the nonaccelerating inflation rate of unemployment ( NAIRU ) . Keeping the unemployment rate the NAIRU leads to ever - accerlating inflation and cannot be maintained . The long - run Phillips curve ( LRPC ) shows the relationship between unemployment and inflation in the run . Any unemployment rate the NAIRU leads to decelerating inflation . 5 natural NAIRU swings The natural rate of unemployment is the portion of the unemployment rate unaffected by of the business cycle . The is another name for the natural rate . The level of unemployment the economy needs in order to avoid accelerating inflation is equal to the rate of unemployment .

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Looking at historical data for Britain , the economist Alban W . H . found that when the unemployment rate was high , the wage rate tended to fall .

Economists soon found a similar relationship between the unemployment rate and the rate of .

The short - run Phillips curve represents the short - run relationship between the unemployment rate and the inflation rate .

The Phillips curve is tied to the - model

An increase in aggregate leads to a fall in the unemployment rate and an increase in the inflation rate .

A decrease in aggregate leads to a rise in the unemployment rate and a fall in the inflation rate .

Other things equal , increases and decreases in aggregate demand result in to the left and right the short - run Phillips curve .

Changes in aggregate also affect the Phillips curve .

Supply shocks , such as sudden changes in the price of , shift the short - run aggregate supply curve and the short - run Phillips curve .

A negative supply shock shifts SRPC ( right ) , increasing the inflation rate and the unemployment rate .

A positive supply shock shifts SRPC ( left ) , decreasing the inflation rate and the unemployment rate .

power workers expected experience downward upward

The expected rate of inflation is the rate that employers and expect in the near future .

Changes in the rate of inflation affect the short - run Phillips curve .

Workers want a wage rate that takes into account future declines in the purchasing of earnings .

An increase in expected inflation shifts the short - run Phillips curve ( rightward ) .

A decrease in expected inflation shifts the short - run Phillips curve ( leftward ) .

People base their expectations about inflation on .

short choice long

In the - run , policymakers have a : they can choose to accept the price of high inflation in order to achieve low unemployment , or they can reject high inflation and pay the price of high unemployment .

In the - run , it is not possible to achieve lower unemployment by accepting higher inflation .

long persistent matches change above high below

A attempt to trade - off lower unemployment for higher inflation leads to accelerating inflation over time .

To avoid accelerating inflation over time , the unemploment rate must be enough that the actual rate of inflation the expected rate of inflation .

The unemployment rate at which inflation does not over time is known as the nonaccelerating inflation rate of unemployment ( NAIRU ) .

Keeping the unemployment rate the NAIRU leads to ever - accerlating inflation and cannot be maintained .

The long - run Phillips curve ( LRPC ) shows the relationship between unemployment and inflation in the run .

Any unemployment rate the NAIRU leads to decelerating inflation .

natural NAIRU swings

The natural rate of unemployment is the portion of the unemployment rate unaffected by of the business cycle .

The is another name for the natural rate .

The level of unemployment the economy needs in order to avoid accelerating inflation is equal to the rate of unemployment .

Module 34

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Module 34Versión en línea

por Zachary Foust

AD Phillips down up along AS demand inflation oil movements supply negative demand

power workers expected experience downward upward

short choice long

long persistent matches change above high below

natural NAIRU swings