Answer to Question #94852 in Macroeconomics for Machyar Hadi Azra

Question

imagine that you are a policy maker trying to decide whether to reduce the rate of inflation. to make an imtelligent decision,what would you need to know about inflation,unemployment,and the trade off between them?

Answer 1

It is imperative to know that unemployment and inflation are inversely proportional therefore reducing the rate of inflation implies increasing unemployment rate.