As part of its Target 2.0 competition for students, The Times published a series of briefings looking at the factors that cause inflation. The one linked below considers the role of labour markets in determining inflation.
Interplay of work and inflation rate Times Online (2/2/07)
Questions
| 1. | Explain the key determinants of the equilibrium level of wages in the labour market. |
| 2. | Assess the role of equilibrium labour market wages in the determination of the level of inflation. |
| 3. | Discuss the extent to which the NAIRU is still a relevant theory when considering the determinants of inflation. |