At the point where actual inflation is equal to expected inflation

Business

1 answer:

Yuri [45]2 years ago

6 0

Answer: The short run Phillips curve intersects the long run Phillips curve.

Explanation: The Phillips curve states that unemployment and inflation have an inverse relationship. This means that they move in opposite directions, I.e. If inflation increases then unemployment decreases and vice versa.

In the graph attached the short run Phillips curve is L - shaped and shows the inverse relationship between both variables initially. The long run Phillips curve is a vertical line, and shows that unemployment rate remains steady regardless of inflation rate, in the long term. Where these 2 lines intersect is where actual inflation and expected inflation are the same.

You might be interested in

Nanda is “sharing” the news that a co-worker is going through a divorce. The news get to the manager and as a result, someone wi

hoa [83]

Answer:

I would punish Nanda.

Explanation:

6 0

2 years ago

George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most ac

aniked [119]

Answer:

- It will go out of business in the long run.

Explanation:

If George and Dan's political consulting firm is losing money, but it is more than covering its variable costs, then the most accurate statement we can make about it is that: It will go out of business in the long run.

In the SHORT RUN, as long as the firm is covering variable costs, it means that the firm is able to generate normal profit or contribution that takes care of part or all of its fixed costs. It will stay in business

In the LONG RUN, the firm will only continue to operate if it can make normal profits

Normal profit occurs when the difference between a company's total revenue and combined explicit and implicit costs are equal to zero.

Since George and Dan's political consulting firm cannot cover fixed costs, it will go out business in the long run.

3 0

2 years ago

You plan to go to school this summer.

Delicious77 [7]

Answer: -100

Explanation: 5,000 - 3,000 - 200, -1,900 =

7 0

2 years ago

Jeff and Rhonda are married and have two children, Max and Jen. Max is 20, attends college in the Los Angeles area full-time, an

Rufina [12.5K]

The nuclear family .

Explanation:

This is because every extended family has a link with their relation. They need to build their home.

6 0

2 years ago

8+x=18. Solve for x.

adoni [48]

Just take away 8 from both sides so you're left with x=10

3 0

2 years ago