HELP ASAP FOR BRAINLIEST ****
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What is the reason that falling unemployment would cause higher inflation?
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What is the reason that high unemployment would decrease inflation?
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What statistical evidence supports the unemployment/inflation trade off theory?
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What statistical evidence does not support the unemployment/inflation trade off theory?

Respuesta :

Okay well I got you.
The first answer is: When unemployment is low, businesses have to competeĀ  more for workers, forcing wages up. Higher wages increases labor costs.
The second answer is: As inflation accelerates, workers may supply labor in the short term because of higher wages- leading to a decline in the unemployment rate.
The third answer is: I don't know this one sorry :(
The fourth answer is: I don't know this one either.
Sorry i wasn't much help...:(
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