Lecture On Chapter 34 Part 2 Flashcards
1
Q
What was the experience of the 1970s and 1980s?
A
Stagflation
2
Q
NAIRU
A
Non excelaration inflation rate u
3
Q
Phillips original graph
A
Plotting the rate of change of wages against unemployment for the United Kingdom
4
Q
What is the nature of the relationship between changes in money wages and unemployment ?
A
Inverse
5
Q
When inflation was high?
A
Unemployment was low
6
Q
When inflation was low?
A
Unemployment was high
7
Q
Stagflation
A
The coexistence of economic stagnation and inflation
