In class students learned about the economic model that shows the negative relationship between inflation and unemployment: The Phillips Curve (technically the short-run Phillips curve). Shifts in the SRPC are a result of changes in expected inflation (increase expected inflation; SRPC shifts up) and changes in inputs - Productivity, Nominal Wages, Commodity Prices. An example would be an increase in commodity prices would shift the SRPC up. Below I also attached a video describing the Phillips Curve on Khan Academy.
Khan Academy - Phillips Curve
The notes are attached as is a review packet that is due Tuesday, December 9th.
Notes - The Phillips Curve
Macroeconomics Review Packet
HW - Read modules 35 and 36
No comments:
Post a Comment