Is zero unemployment achievable with stable prices

Reference no: EM131314422

1. Is zero unemployment achievable with stable prices? Is it desirable?

2. What do you understand by the term the term NAIRU? Using an appropriate diagram, show how attempts by government to reduce unemployment below this rate by expanding aggregate demand may only lead to higher inflation, especially in the longer term.

3. Why do some economists tend to argue that deflation, just like inflation, is bad?

Reference no: EM131314422

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