Some countries have had relatively high inflation and relatively high unemployment for long periods of time. Is this consistent with the Phillips curve? Defend your answer

They are consistent with the long-run Phillips curve. In the long run the natural rate of unemployment is determined by factors other than inflation. For example, the natural rate of unemployment will be higher in a country with a higher minimum wage and more generous unemployment compensation. In the long run, inflation depends on the growth rate of the money supply. So, it is possible for a country with a Phillips curve that is farther to the right to also have greater money supply growth and higher inflation.

Economics

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If the price of used cars rises, then the CPI will ________ and the GDP deflator will ________

A) increase; increase B) increase; not change C) not change; increase D) not change; not change E) increase; increase by more than the CPI

Economics

The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are not available to Sam?

A) 40 gallons of gasoline and 0 pounds of coffee B) 32 gallons of gasoline and 4 pounds of coffee C) 8 gallons of gasoline and 8 pounds of coffee D) 16 gallons of gasoline and 16 pounds of coffee

Economics