Class Notes (834,049)
United States (323,621)
Economics (149)
ECON 2010 (25)
All (12)
Lecture

ECON 2010 Prin Macroeconomics Chapter 17 Notes

9 Pages
123 Views
Unlock Document

Department
Economics
Course
ECON 2010
Professor
All Professors
Semester
Winter

Description
1Chapter 17 Inflation UnemploymentFed PolicyIUnemploymentInflation TradeoffaLow unemployment levels will produce labor shortages making the hire process more difficult for timebTo shorten the search period most firms respond by raising wages or other benefitsWage hikes create higher pay for the same level of economic outputa normal price increasecAggregated throughout the economy wage increases lacking real output changes will have an inflationary effectdThe Philips curve demonstrates the relationship between low unemploymenthigher inflation rateseThis short run relationship was found to hold true across many economiesfSome policymakers began to wonder if you could buy lower unemployment with higher inflationgPhilips curvea curve showing the shortrun relationship between the unemployment ratethe inflation rate
More Less

Related notes for ECON 2010

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit