Answer to Question #243341 in Economics for izzy

Question

Suppose at the current scenario of the NZ economy, the unemployment rate is forecasted to fall in the next two quarters. Inflation is predicted to rise and the average hourly wage to rise during these quarters. In such circumstances, based on the regression what do you think will happen to the overall health-cost of the Māori? Will it be predicted to rise or fall?

Answer 1

If both inflation and the average hourly wage are predicted to rise, then the overall health-cost of the Māori may either increase or decrease.