Question

Is the economy currently operating in the keynesian, intermediate or neoclassical portion of the economys aggregate supply curve?

Answer 1

Answer :-

The most recent report in U S shows that the (August 2018) the unemployment rate in the country was 3.9%. With the assistance of Phillip's curve we can clarify the present province of U S economy. As per Phillip's curve the ideal degree of unemployment is 5%. It implies that if unemployment exists at a rate of beneath 5% the economy is in full employment and in neo-classical range. As the unemployment falls beneath the alluring degree of 3%, the economy is by and by experiencing inflation.

On the off chance that the economy further moves and unemployment further abatement and the economy will endure hyper inflation. This expansion in value level may expand the exchange and theoretical interest for cash and the economy will return to the Keynesian range.

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