Hi! I had to graph inflation/unemployment...
Why did the inflation rate start increasing and the unemployment rate started decreasing after 2000???
Thanks.
I should let economyst answer, but I'll comment on this, If economyst responds use his/her word on the subject.
I suppose you did some kind of x-y scatter plot for the data points?
I think classical economics theorizes that inflation and unemployment are inversely related. As unemployment decreases and full employment is reached this puts upward pressure on prices. Also skilled labor becomes scarcer and wages rise too.
When the opposite phenomena happens, i.e. unemployment rises, prices are supposed to pull back. This is not always the case though and sometimes we have stagflation. I'll let economyst provide a clearer and detailed explanation to your question.
Roger's answer is excellent
just search for smartalec economics in google.
and ask them, easy!
I am doing economics for the first time and I would like to know what are the features of macroeconomics?
Macroeconomics is a branch of economics that deals with the behavior, performance, and structure of an entire economy as a whole. It focuses on the issues and variables that affect the overall functioning of the economy, such as economic growth, inflation, unemployment, and fiscal and monetary policies. Here are some key features of macroeconomics:
1. Aggregate analysis: Macroeconomics looks at the economy as a whole rather than individual markets or industries. It analyzes the interactions and interdependencies between different sectors, such as households, businesses, and the government.
2. Key macroeconomic variables: Macroeconomics examines various key economic variables that influence the overall state of the economy, including gross domestic product (GDP), inflation rate, unemployment rate, interest rates, investment, consumption, exports, imports, etc.
3. Economic indicators: Macroeconomists study and analyze a range of indicators, such as GDP growth rate, consumer price index (CPI), producer price index (PPI), labor force participation rate, and many others. These indicators help to understand the overall performance and health of the economy.
4. Policy implications: Macroeconomics aims to provide insights into the impacts of government policies and interventions on the economy. It explores how fiscal policies (government spending and taxation) and monetary policies (control of money supply and interest rates) can influence economic outcomes and stability.
5. Long-term economic growth: Macroeconomics investigates the factors that contribute to long-term economic growth and development. It examines factors such as technological progress, capital accumulation, labor force participation, productivity, and innovation.
6. Business cycles: Macroeconomics studies the fluctuations in economic activity over time known as business cycles. It analyzes the causes of expansions (periods of high economic growth) and contractions (economic downturns or recessions) and explores the impacts on employment, prices, and other economic variables.
To delve deeper into the features and concepts of macroeconomics, I suggest referring to reputable economics textbooks, online resources, or even taking courses specifically focused on this subject.