Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    Just a general thread for Unit 2 on Tuesday 19th, questions are welcome
    Offline

    2
    ReputationRep:
    what subject
    • Thread Starter
    Offline

    2
    ReputationRep:
    (Original post by mismash)
    what subject
    Economics! sorry
    • Thread Starter
    Offline

    2
    ReputationRep:
    http://www.thestudentroom.co.uk/show....php?t=3317431 NEW THREAD HERE
    Offline

    0
    ReputationRep:
    (Original post by yaya sanogo)
    Just a general thread for Unit 2 on Tuesday 19th, questions are welcome
    Hey I need help with evaluation of the phillips curve.how do you actually put it in words about the trade off between unemployment and inflation
    Offline

    0
    ReputationRep:
    At 0% inflation there is 2.5% unemployment thus meaning even when there is no inflation there is still some unemployment. if there was 0% unemployment then firms would have to increase wages to complete for workers and thus increase the price of their product causing inflation
    Offline

    9
    ReputationRep:
    (Original post by Gwen President)
    Hey I need help with evaluation of the phillips curve.how do you actually put it in words about the trade off between unemployment and inflation
    As unemployment decreases the rate of inflation increases. This is because firms are employing more people (paying more wages), hence their costs of production have increased. To prevent making a loss they pass on this cost to the consumers in the form of increased prices for their good/services.

    Hope this helps.
    Offline

    0
    ReputationRep:
    (Original post by Gwen President)
    Hey I need help with evaluation of the phillips curve.how do you actually put it in words about the trade off between unemployment and inflation
    At 0% inflation there is 2.5% unemployment thus meaning even when there is no inflation there is still some unemployment. if there was 0% unemployment then firms would have to increase wages to complete for workers and thus increase the price of their product causing inflation
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: May 18, 2015

927

students online now

800,000+

Exam discussions

Find your exam discussion here

Poll
Should predicted grades be removed from the uni application process

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.