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Phillips Curve Definition
The Phillips curve is an economic theory that inflation and unemployment have a stable and inverse relationship.
Examining The Phillips Curve
This model depicts an inverse relationship between unemployment and wage inflation, but is it accurate?
How Inflation and Unemployment are Related
How can inflation affect unemployment, and vice versa? Here, we examine the relationship between wage inflation, consumer prices, and unemployment.
Money Illusion Definition
Money illusion is an economic theory stating that people have a tendency to view their wealth and income in nominal dollar terms, ignoring inflation.
What actions can be used to control stagflation?
Find out why economic stagflation cannot be corrected through traditional fiscal or monetary policy and why it was thought to be impossible to control.
Natural Unemployment Definition
Natural unemployment is the number of people unemployed due to the structure of the labor force, such as those who lack the skills to gain employment.
Non-Accelerating Inflation Rate of Unemployment – NAIRU Definition
The non-accelerating inflation rate of unemployment (NAIRU) is the specific level of unemployment that is evident in an economy that does not cause inflation to increase. In other words, if unemployment is at the NAIRU level, inflation is constant.
What happens when inflation and unemployment are positively correlated?
Learn about the historic relationship between inflation and unemployment and the implications that occur when they are positively correlated.
When Is Inflation Good for the Economy?
Find out why some economists and public policy makers believe that inflation is a good, or even necessary, for economic growth.
9 Common Effects of Inflation
Since investors haven't seen inflation or significant price rises in years, it's worth brushing up on the most common effects of inflation. Is inflation ever good? If you like your job it is.