Not a dumb question at all! The MPC is given the task of achieving CPI inflation of 2%. They are allowed flexibility of + or - 1%; ie they need to keep CPI inflation between 1% and 3%. If they achieve that, then they can look at setting interest rates to achieve long term growth. But, in reality it appears that they do take the rate of growth/unemployment in to account, otherwise with UK CPI inflation at 4%, they would have raised interest rates by now!
sorry if this is a dumb question, but are the MPC more concerned with achieving economic growth and higher levels of employment, or a lower price level and less inflation which results in more unemployment? because if the AS curve is unable to move with the AD curve, aren't these two objectives directly conflicting?
i get it. very clearly explained
cyborganic99 2 months ago
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Thumbs up if you are eating chicken at THIS VERY MOMENT
MrAlexIsWeird2 4 months ago 3
Do my exam for me 2moro plzzzzzzzzzzzzzzzzzzzzzzzzzzzz :'(
hemant1993 9 months ago 3
Not a dumb question at all! The MPC is given the task of achieving CPI inflation of 2%. They are allowed flexibility of + or - 1%; ie they need to keep CPI inflation between 1% and 3%. If they achieve that, then they can look at setting interest rates to achieve long term growth. But, in reality it appears that they do take the rate of growth/unemployment in to account, otherwise with UK CPI inflation at 4%, they would have raised interest rates by now!
BrynJonesOnline 10 months ago
sorry if this is a dumb question, but are the MPC more concerned with achieving economic growth and higher levels of employment, or a lower price level and less inflation which results in more unemployment? because if the AS curve is unable to move with the AD curve, aren't these two objectives directly conflicting?
theairborne145 10 months ago
No, I 'm an A level teacher at a 6th form College in the UK
BrynJonesOnline 10 months ago 3
u make it sooooo easy to understand!
may i ask if you're a professor in a certain university?
dongjinmoon 10 months ago
THANK YOU :)
likewhoami 10 months ago
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I don't even live in the UK and I'm still using these videos. :)
iiiBertoiii 11 months ago
Your lecture style is soooooo good !!!
bobichina 1 year ago
Brilliant Brilliant Thankyou
ramsey00m 1 year ago
You've just helped me with my AS Economics exam ! Thank you so much .
dhillon92 1 year ago