This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If workers accurately predict the rate of inflation, is there a short-run trade-off between ... (Read 55 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
on: Jun 29, 2018
If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
 
  What will be an ideal response?

Question 2

What is the difference between federal purchases and federal expenditures?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kthug

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

If workers accurately predict the rate of inflation, then they will incorporate wage adjustments into their contracts that will take inflation into account. The result is no change in the real wage, and no change in the unemployment rate, indicating that there is no trade-off between inflation and unemployment. Instead, the Phillips curve would be vertical.

Answer to Question 2

Federal purchases refer to federal spending where the federal government receives a good or service in return, like an aircraft carrier. Federal expenditures include federal purchases plus interest on the national debt, grants to state and local governments, and transfer payments.


strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

The role of leptin in regulating appetite and metabolic rate. The role of leptin in regulating appetite and metabolic rate.
The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Respiratory Rate Ranges of Various Age Groups Respiratory Rate Ranges of Various Age Groups
Most lifts are equipped with short pad extensions that are often necessary to use to allow the pad ... Most lifts are equipped with short pad extensions that are often necessary to use to allow the pad ...
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011 Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011
Video: Febrile Seizure

For a complete list of videos, visit our video library