How will the unemployment rate and inflation be affected

Reference no: EM133306461

Assignment:

In April 2020, the economy lost about 2 million jobs amid the Covid-19 crisis. According to Statistics, the unemployment rate soared to 13%, up from the 7.8% recorded in March of 2020. Around the same period, inflation rate dropped from 2.2% in February to 0.9% in March and -0.2% in April. Use appropriate graph(s) to explain the following.
Was there a trade-off between the unemployment rate and the inflation rate between the months of March and April 2020? How can the Phillips curve be used to answer this question?
If the unemployment rate and inflation are both rising, can this be explained by a movement along a given Phillips curve? What must be happening to aggregate demand and aggregate supply? What must be happening to the Phillips curve?
If the Bank continues to undertake expansionary monetary policy, how will the unemployment rate and inflation be affected? (Use both Phillips curve and aggregate supply - aggregate demand graphs in your explanation.)
Is there a trade-off between the unemployment rate and inflation in the long run? How is the long run aggregate supply curve related to the long run Phillips curve?

Reference no: EM133306461

Questions Cloud

Analyze the key concepts that emerge in the video : Critique the three components to change. For example, what do you agree with? What do you disagree with? What might be missing? What is the scholarly evidence

Discuss the changing nature of international work : Discuss the changing nature of international work and workforce given the Covid-19 pandemic and appraise the implications on the focus of Global HRM.

Compare and contrast brain drain and brain gain : Compare and contrast 'brain drain' and 'brain gain'. Discuss the push and pull factors that cause 'brain drain' and 'brain gain' to occur.

New animal shelter by making twelve annual deposits : Dog Care Co. wants to finance a new animal shelter by making twelve annual deposits into a fund earning 9% compounded annually.

How will the unemployment rate and inflation be affected : Is there a trade-off between the unemployment rate and inflation in the long run? How is the long run aggregate supply curve related to the long run Phillips

Calculation of net passive income : Which of the following items of income, gain, loss, or deduction will be included in the calculation of net passive income?

What a company can gain by pursuing financial and social : What a company can gain by pursuing financial/competitiveness objectives and social objectives (CSR) together and what capabilities it must have in order

Explain the strength of ties to home concept using : Explain the 'strength of ties to home' concept using, as an example, the integration of qualified immigrants (QIs) into an international workforce.

What trainer will do before training session to facilitate : Exactly which methods/techniques you are using at each step of the training session and why you are using each method/technique at this point?

User Account

All Pages