Summary of the phillips curves, Macroeconomics

Assignment Help:

Summary of the Phillips curves

In neo-classical synthesis, augmented Phillips curve is known as the short-run Phillips curve. It is presumed to be stable as long as expectations of future inflation don't change. To summarize, we have three Phillips curves:

Traditional Phillips curve. Π_W = f(U) and same downward sloping relationship applies to both the short and the long run.
Short-run Phillips curve (SPC). Π_w = f(U) + Πe and curve is valid only in the short run (SPC = Short-run Phillips Curve).
Long-run Phillips curve (LPC). Π_w = Π_M, U = U_N and there is not any relationship between Π_w and U (U_N is natural rate of unemployment).

Related Discussions:- Summary of the phillips curves

Joke among economists, There is a joke among economists that children are a...

There is a joke among economists that children are an "inferior good." In many countries there appears to be a negative relationship between income and the number children in a hou

Two-way anova., A scientist has been studying the organisms colonising the ...

A scientist has been studying the organisms colonising the pilings underneath a wharf in Sydney Harbour. He postulates two factors might make these communities of sponges, worms, a

National income, GDP vs GNP in kenya

GDP vs GNP in kenya

Survivor Island, the central economic problem facing the group of survivors...

the central economic problem facing the group of survivors

Marginal product of labor and marginal product, How Walmart''s marginal pr...

How Walmart''s marginal product labor related to its marginal product?

What are the social economic and non economic factors, What are the social ...

What are the social economic and non economic factors? Development is also a procedure involving change in some social economic and non economic factors comprising: • Econom

Control of ochratoxin, Q. Control of ochratoxin? Control: Once ochratox...

Q. Control of ochratoxin? Control: Once ochratoxin A has been formed in a food, it is difficult to remove by most forms of food processing. Cooking with or without previous soa

Show the advantage and disadvantage of money, Q. Show the advantage and dis...

Q. Show the advantage and disadvantage of money? Money has one significant advantage and one disadvantage compared to bonds: · Advantage: Money is more liquid than bond

Aggregate supply - long run equilibrium:graphical analysis, Long Run Equili...

Long Run Equilibrium:Graphical Analysis In the long run the natural rate of output is the level of output to which the economy will tend to adjust in the long run. This indicat

Internatinal trade, how can a country maintain equilibrium GDP with foreign...

how can a country maintain equilibrium GDP with foreign trade?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages