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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
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What is the typical relationship between inflation and unemployment?
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.
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Describe and give reasons for the relationship that exists between RGDP inflation and umeployment?
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
What is the relationship between inflation and deflation and the Cross of Gold speech?
Help me
What is the Phillips curve?
In economics it's the inverse relationship between inflation and unemployment.
What is relationship between inflation and recession?
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.
What is the typical relationship between inflation and unemployment?
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.
What is the relationship between CPI and inflation?
CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
Describe and give reasons for the relationship that exists between RGDP inflation and umeployment?
It is an inverse relationship. As inflation increases, unemployment decreases. This can be shown by the Phillips curve
What is the relationship between inflation and deflation and the Cross of Gold speech?
Help me
What is the relationship between inflation and deflation and Cross of Gold speech?
Help me
What is the Phillips curve?
In economics it's the inverse relationship between inflation and unemployment.
Is there any relationship between issue of plastic currency and inflation?
lolz, no no0b.
What is the relationship between inflation and unemployment in the long run?
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.
What is the relationship between interest rates and inflation?
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.
What does the stock market vs inflation chart reveal about the relationship between stock market performance and inflation rates?
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.
Is the relationship between the inflation rate and changes in the quantity of money macro or micro economics?
macro
