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Reply to this post: In general, there are 3 macroeconomics goals, which arestableeconomic growth (represented by GDP growth), price stability (inflation or deflation) and full
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In general, there are 3 macroeconomics goals, which arestableeconomic growth (represented by GDP growth), price stability (inflation or deflation) and full employment. In this case the main topic is about growing unemployment rate after Omicron wave. However, looking at this from the full-scale financial side it is not a big problem. We have already learned that when the economy reaches 100% of employment rate the expansion begins along with increase in inflation. It can be explained by The Phillips Curve, which shows that relationship between the unemployment rate with the inflation rate is inverse. In the article "Risinginflationand interest rate hikes give students a run for their money" it is said that in January,Statistics Canada'sDecember consumer price indexwas up 4.8% from last year, and after this Canada faces increase in unemployment. Another fact which should be considered, is that the increase in inflation causes GDP decreases, and then the country is not growing economically. So, looking on this picture from the macroeconomic perspective, rising in inflation can be controlled by increasing unemployment rate, in order to regulate stability of Canadian economy growth. Thus, lookingat unemployment from this point of view, we can conclude that this is not as big a problem as everyone thinks.
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