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Author Question: The Okun's law shows the relationship between A) inflation and unemployment rate. B) output ... (Read 53 times)

tuffie

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on: Jun 30, 2018
The Okun's law shows the relationship between
 
  A) inflation and unemployment rate.
  B) output growth and unemployment.
  C) inflation and output growth.
  D) output growth and money supply.

Question 2

Explain why economists care about inflation.
 
  What will be an ideal response?


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Kdiggy

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Inflation will cause relative prices to change. It will also cause changes in the distribution of income. Inflation will lead to other distortions such as tax distortions and uncertainty.


tuffie

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Reply #2 on: Jun 30, 2018
Thank you


Kdiggy

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Reply #3 on: Jun 30, 2018
No problemo


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