Macroeconomic Objectives (DP IB Economics: HL)

Text B, Paragraph 2:
Turkey has been experiencing high inflation due to a combination of factors in the oil and housing markets. Economists are urging for immediate policy responses to control the escalating prices.

State two causes of inflation as indicated in bold (Text B, Paragraph 2).

Text E, Paragraph 2
With the recent economic downturn, many countries, including Italy, have faced rising cyclical unemployment, particularly in sectors such as manufacturing and retail, which have seen more problems.

Define the term cyclical unemployment as indicated in bold (Text E, Paragraph 2).

Text D, Paragraph 3
According to the Short Run Phillips Curve, there is often a trade-off between inflation and unemployment. As the economy of India grows, policymakers are monitoring how rising inflation may affect job creation.

Describe the relationship between inflation and unemployment as found in (Text D, Paragraph 3).