Macroeconomics - inflation!

Hi! I had to graph inflation/unemployment...

Why did the inflation rate start increasing and the unemployment rate started decreasing after 2000???


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?

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Please someone show me how to work this one out? Suppose Caroline is a cinephile and buys only movie tickets. Caroline deposits $3000 in a bank acct that pays an annual interest rate of 20%. You can assume that this interest rate

  2. Economics

    1) Which of the following is an example of a measure of labor productivity? a. Autos get 30 gallons to the mile. b. The growth rate of per capita real GDP is 3.5 percent per year. c. Farm workers produce 30 bushels of wheat per

  3. history

    Which of the following was a result of the Great Depression? A. widespread unemployment B. inflation C. a surplus of food supplies D. a stock market crash is it A?

  4. MACRO

    Suppose last year's inflation rate was 5%, but Wall Street analysts expect this year's interest rate to be 4%. Which of the following correctly describes people's beliefs according to rational or adaptive expectations theories?

  1. economics

    which of the following statements about inflation are true? check all that applies a) policy makers also worry about a negative inflation rate, or deflation b) painful government actions may sometimes be necessary to bring down a

  2. History

    Which identifies the increase in the price of goods and decrease in the value of money? recession inflation*** unemployment stagnation

  3. History

    Which of the following was a direct consequence of Andrew Jackson's Bank War? People were no longer able to buy land on credit. Financial institutions closed, leading to unemployment. The value of paper money decreased, leading to

  4. Macroeconomics* Please check my answers*

    If real GDP per capita grows at a rate of 5% per year consistently over time, how many years would it take for it to double in size? 5 10 My answer 14 70 The purpose of indexing Social Security payments to the CPI is to ______.

  1. Economics

    1. According to the data table below, what is the unemployment rate?: Total Population: 1,500 Population under 16 or institutionalised: 360 Not in the labor force: 450 Unemployed: 69 Workers with part-time work who want full-time:

  2. social studies

    Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would. A. increase B.decrease C.remain stable D. not be affected by inflation

  3. algebra 2

    When inflation causes the price of an item to increase the new cost C and the original cost c are related by the formula C=c(1+r)^n, where r is the rate of inflation per year as a decimal and n is the number of years. What would

  4. Statistics

    The U.S. Department of Labor and Statistics released the current unemployment rate of 5.3% for the month in the U.S. and claims the unemployment has not changed in the last two months. However, the states statistics reveal that

You can view more similar questions or ask a new question.