Excellent video mate. Really helped to walk me through the key evaluation of unemployment policies with great clarity. You should definitely do more evaluative videos on key economic aspects as it is really interesting to listen to you. Keep up the good work! Really helping me with my A2 Economics course! :)
The problem with expansionary monetary policy (lnterest rates) is that it affects peoples expectations of future interest rates. Thus altering their job offer curve into accepting jobs with a lower real wage in the future. Once the the inflation, or influence in monetary policy is realized the unemployment rate will readjust to the prepolicy levels however inflation will remain. It also tends to ignore the market forces from reaching equilibrium and leads to malinvestment ... Friedmans model.
Excellent video mate. Really helped to walk me through the key evaluation of unemployment policies with great clarity. You should definitely do more evaluative videos on key economic aspects as it is really interesting to listen to you. Keep up the good work! Really helping me with my A2 Economics course! :)
flame2407 1 week ago
The problem with expansionary monetary policy (lnterest rates) is that it affects peoples expectations of future interest rates. Thus altering their job offer curve into accepting jobs with a lower real wage in the future. Once the the inflation, or influence in monetary policy is realized the unemployment rate will readjust to the prepolicy levels however inflation will remain. It also tends to ignore the market forces from reaching equilibrium and leads to malinvestment ... Friedmans model.
aaronbassplyr 3 months ago
so much help for a levels, thanks ;-]
suryahummer45 3 months ago