The Tradeoff between Inflation and Unemployment (Part I)

Title:	The Tradeoff between Inflation and Unemployment (Part I)
Description:	I. Some background<br />A. What Phillips discovered <br />B. Defining Unit Labor Costs<br />C. From wage changes to price changes<br />II. Origins of the Phillips Curve<br />A. Applying aggregate demand-aggregate supply analysis to a growing economy<br />B. Does the Phillips curve fit the data?<br />III. Supply Shocks and Inflation<br />A. Supply shocks cause deviations of Inflation from %deltaULC<br />B. Adverse supply shocks raise both Inflation rate and U.<br />C. Favorable supply shocks reduce both Inflation rate and U.<br />D. Two main conclusions<br />IV. The Vertical Long-Run Phillips Curve<br />A. Remember the self-correcting mechanism<br />B. How this appears on a Phillips curve<br />C. Conclusions:<br />1. Points like a and b are not sustainable.<br />V. Expected Inflation and the Phillips Curve
Number of Cards:	15
Favorite Count:	0
Author:	kchia13
Created:	2009-04-13
Tags:	aggregate curve demand inflation phillips ulc unemployment
Private:	No

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