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Chapter 26: Q.11RQ (page 642)

Do neoclassical economists tend to focus more on cyclical unemployment or on inflation? Explain briefly.

Short Answer

Expert verified

Neoclassical economists focus on inflation.

Step by step solution

01

Step1: Given Information

Cyclical unemployment - It is the overall unemployment that results literally from cycles of economic upturn and downturn.

Inflation-It is the rate of increase in prices of goods and services over a given period.

02

Step2: Explanation

Neoclassical economists focuses more on inflation is because any attempt to resolve cyclic unemployment may only create inflation and that can create noticeable damaging effects on nation.

03

Step3: Final Result

Neoclassical economists focus on inflation.

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