Define Phillips curve .

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Answer 1

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Definition Definition Relationship between the rate of unemployment and the rate of inflation that shows that the lower the initial rate of unemployment, the greater the rise in wage rate corresponding to a given rise in the rate of unemployment. The Phillips curve assumes that the ratio between prices and nominal wage rates is constant in the short run. Presented graphically, the Phillips curve shows an inverse relationship between the rate of unemployment and the rate of inflation.

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

answer

Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

Answer 2

Question

Definition Definition Relationship between the rate of unemployment and the rate of inflation that shows that the lower the initial rate of unemployment, the greater the rise in wage rate corresponding to a given rise in the rate of unemployment. The Phillips curve assumes that the ratio between prices and nominal wage rates is constant in the short run. Presented graphically, the Phillips curve shows an inverse relationship between the rate of unemployment and the rate of inflation.

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Relationship between the rate of unemployment and the rate of inflation that shows that the lower the initial rate of unemployment, the greater the rise in wage rate corresponding to a given rise in the rate of unemployment. The Phillips curve assumes that the ratio between prices and nominal wage rates is constant in the short run. Presented graphically, the Phillips curve shows an inverse relationship between the rate of unemployment and the rate of inflation.

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Relationship between the rate of unemployment and the rate of inflation that shows that the lower the initial rate of unemployment, the greater the rise in wage rate corresponding to a given rise in the rate of unemployment. The Phillips curve assumes that the ratio between prices and nominal wage rates is constant in the short run. Presented graphically, the Phillips curve shows an inverse relationship between the rate of unemployment and the rate of inflation.

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

Answer 6

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.

Economics Concept Introduction

Philips curve: The Phillips curve shows the inverse relationship between unemployment and inflation rate in an economy.

Answer 7

Chapter 17, Problem 1SQP

To determine

Define Phillips curve.

Answer 8

Expert Solution & Answer

Explanation of Solution

The Phillips curve represents the inverse relationship between inflation and unemployment in the economy. If inflation increases, unemployment decreases and vice versa. An increase in the aggregate demand increases the inflation rate. This in turn reduces the unemployment rate in the economy.