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The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
Why the inflation rate is calculated?
Inflation is measured by calculating the percentage rate of change of price index, which is calledthe inflation rate. The rate of inflation is usually expressed in annualised term, though the measurment periods are usually different from one year. Inflation rate= p - P /P *100 i.e, p minus P divided by P into100. Where, p= current average price level, P= price level a year ago.
What does the Phillip's Curve illustrate?
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
The inflation rate is too high is this a normative statement?
Yes it is. A normative statement is one in which a person says something is factual based on their opinion. It is purely subjective.
Where may one view the history of the inflation rate in Canada?
One can view the history of the inflation rate in Canada on several economic websites. Look on Rate Inflation, Trading Economics, and the Bank of Canada.
The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
Why the inflation rate is calculated?
Inflation is measured by calculating the percentage rate of change of price index, which is calledthe inflation rate. The rate of inflation is usually expressed in annualised term, though the measurment periods are usually different from one year. Inflation rate= p - P /P *100 i.e, p minus P divided by P into100. Where, p= current average price level, P= price level a year ago.
What does the Phillip's Curve illustrate?
A graph that shows that there is a relation between unemployment and inflation: One can either have a high inflation and low unemployment or low inflation with high unemployment.
The inflation rate is too high is this a normative statement?
Yes it is. A normative statement is one in which a person says something is factual based on their opinion. It is purely subjective.
Table of inflation rate of India for last five years?
Inflation.eu is one of many sites that lists the inflation rates of India over the last 5 years. Since 2004, the inflation rate has risen and fallen, with a peak of 14.97 percent in 2009. The rate in 2013 was 9.13 percent.
How can 1200 be one third of 1800?
$ 1200 in 1800-n2022- inflation calculator $1,200.00 inflation rate 2.44 percent year 18000
What does disinflated mean?
dis·in·fla·tion  disinflation pronunciation" /> /ˌdɪsɪnˈfleɪʃən/ Show Spelled[dis-in-fley-shuhn] noun Economics .a period or process of slowing the rate of inflation.A drop in inflation rate , i.e . a reduction in the rate at which prices rise-(of an economy) to slow down the rate of inflation.verb (used with object)2.to slow down the rate of inflation in (an economy).Definition: Disinflation occurs when the inflation rate is declining over time.Deflation occurs when the inflation rate becomes negative.Terms related to Disinflation:DeflationInflationRecession***-Inflation is one of the most important variables in economics, as its impact is felt on everything from mortgage rates to union-management contract negotiations.The Economics Glossary defines Inflation as: Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole.
What is the relationship between interest rate and labor supply?
There is not a direct link but high interest rates are associated with expectations of high rates of inflation. High inflation may be associated with high wage rises and so lower employment rates. Low employment rates would suggest excess labour supply. So, from one end of that chain to the other: high interest rates are associated with high labour supply.
In normal cirucmstances is there a short run tradeoff between the rate of inflation and the rate of unemployment?
Yes. Inflation causes businesses to have to cut costs, and labor is one of the easily cuttable costs. See the Phillips Curve.
Four objective of macroeconomics?
Low unemployment Low Inflation High and stable economic growth The avoidance of balance of payments deficits and excessive exchange rate fluctuations (this one is concerned with international trade) They are actually Full Employment - lowest rate of unemployment attainable without accelerating inflation Price Stability - keeping inflation down (monetary policy, fiscal policy) Economic Growth - self explanatory External policy - Current account, exchange rate etc
