Asked by Grace Sookhai on May 02, 2024
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An increase in the inflation rate permanently reduces the natural rate of unemployment.
Inflation Rate
The percentage increase in the general level of prices for goods and services in an economy over a period of time, often measured annually.
Natural Rate
Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable rate of inflation.
Unemployment
Unemployment is the state of being without a job despite actively looking for work, reflecting the portion of the labor force unable to find gainful employment.
- Learn about the natural rate of unemployment and its determinants.
- Garner insights into the theory of the Phillips curve across varying periods.
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Learning Objectives
- Learn about the natural rate of unemployment and its determinants.
- Garner insights into the theory of the Phillips curve across varying periods.
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