Monetarists argue that in the long run there is no Philip curve trade-off as Long Run AS is inelastic. If there is an increase in aggregate demand, then workers demand higher nominal wages. When they receive higher nominal wages, they work longer hours because they feel real wages have increased. (their price expectations are based on last year). However, this increase in AD causes inflation, and therefore, real wages stay the same. When they realise real wages are the same as last year, they change their price expectations, and no longer supply extra labour and the real output returns to its original level. Therefore, unemployment remains unchanged, but we have a higher inflation rate. Hence in long run, the Philip curve is vertical.
Like Litmus paper, _________ is also a natural indicator to test the nature of chemical substances.
Who was awarded the Man of the Match in the final of ICC Asia Cup 2023 for his outstanding performance?
For which of the following productions is the Ramagundam power plant famous?
The Jayakwadi Project, which is one of the largest irrigation projects is on the river-
Which Multilateral Development Bank rolled out Country Partnership strategy?
What is the name of the portal that facilitates the automatic triggering of activities for pending tasks nearing the Turnaround Time and complaints regi...
How many teams are there in the premier league of tennis in India?
India ranked 132nd among 191 countries and territories on the 2021 Human Development Index (HDI), which of the following was in the top three?
I....
Where was the 13th Hockey India senior women’s national hockey championship held?
Article ___________ of the Indian Constitution gives an extensive original jurisdiction to the Supreme Court in regard to enforcement of Fundamental R...