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What is the difference between expected inflation and inflation how does changing inflation expections affect short run philpse curve?
Wiki User
∙ 14y ago
The first answer is self-explanatory. If consumers THINK a good will go up in price, then that good has a high expected inflation. Whether or not it actually does is it's actual inflation.
This matters in the Phillips Curve mainly when dealing with businesses. Basically, if a business thinks it's costs are going to increase (inflation), it might not hire more people or might even lay people off to save money. Thus, as expected inflation rises, unemployment rises, just like the Curve says it would.
Wiki User
∙ 14y ago
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What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
What is nominal interest rate minus the expected rate of inflation?
The expected real interest rate.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
In a period of low inflation and economic recession, the federal reserve is expected to take which action?
Tightening the money supply
What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
What are the four factors of PE?
Expected growth of earnings, expected stability of earnings, expected inflation, and yields of competing investments.
What is nominal interest rate minus the expected rate of inflation?
The expected real interest rate.
What is expected in a public baby changing room?
a Baby changing table and a sink.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
Is the average speed of earths orbit changing?
It can be expected to change gradually over time, but the difference from one year to the next, or even in thousands of years, will be insignificant.
What is south Africa's curent inflation rate?
The current inflation percentage at end of second quarter (June 2009) is 7.3%. However this is expected to diminish to approximately 7.1% in the third quarter.
In a period of low inflation and economic recession, the federal reserve is expected to take which action?
Tightening the money supply
What would you expect the nominal rate of interest to be if the real is 4 percent and the expected inflation rate is 7 percent?
5
What does an auditor do if there is a material difference between an expected and actual balance?
However, if there is a material difference between the expected and actual balance, the auditor will investigate this difference further. At this point the auditor will develop an explanation for the difference.
What is appropriate percentage for present value?
The answer depends on the term (length of ime) and the interest rate or inflation rate expected over the period.
