Under what circumstances will employment be affected by inflation?
A)only if the inflation rate gets above a certain level
B)only if the inflation rate is different from what was expected
C)only if the inflation is expected
D)only if unemployment is above the natural rate

Question

Quizplus · Accepted Answer

Employment is affected by inflation when the inflation rate is different from what was expected because unexpected inflation can lead to adjustments in wages and prices, impacting employment levels.

Under What Circumstances Will Employment Be Affected by Inflation