As the OCR increases it is highly likely that banks will increase their retail interest rates. As they do this borrowing will become relatively more expensive so there will be more incentive to save. So consumption a component of Aggregate demand will decrease causing aggregate demand to decrease which will than decrease Demand pull inflation
The typical relationship between inflation and unemployment is known as the Phillips curve. It suggests that there is an inverse relationship between the two - when inflation is high, unemployment tends to be low, and vice versa. This means that as one decreases, the other tends to increase.
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
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In economics it's the inverse relationship between inflation and unemployment.
The relationship between inflation and recession is that a recession will cause inflation to go down. The reason for this is due to their being less money being spent due to the recession.
The typical relationship between inflation and unemployment is known as the Phillips curve. It suggests that there is an inverse relationship between the two - when inflation is high, unemployment tends to be low, and vice versa. This means that as one decreases, the other tends to increase.
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
Help me
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In economics it's the inverse relationship between inflation and unemployment.
lolz, no no0b.
In the long run, there is a trade-off between inflation and unemployment known as the Phillips curve. This relationship suggests that as inflation increases, unemployment decreases, and vice versa. However, this trade-off is not always consistent and can be influenced by various economic factors.
Interest rates and inflation have an inverse relationship. When inflation is high, central banks typically raise interest rates to curb spending and reduce inflation. Conversely, when inflation is low, central banks may lower interest rates to stimulate spending and boost economic growth.
The stock market vs inflation chart shows that there is a relationship between stock market performance and inflation rates. Generally, when inflation rates are high, stock market performance tends to be lower, and vice versa. This is because high inflation erodes the purchasing power of money, leading to lower real returns on investments in the stock market.
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