Question

Trade-off between inflatation and unemployment of Yemen.

Answer 1

Yemen is a country in the mid-east. Before the country was hit with civil war and air strikes by the military bloc led by UAE and Saudi Arabia, the citizens of the country had decent standard of living.

The inflation rate in the country was 10.60 percent from 2006 to 2017, reaching an all time high of 24.77 percent in the month of September, 2011 and a record low of 0.24 percent in January, 2017.

Unemployment rate in Yemen has averaged around 13% in the last 5 years reaching a high of 14% in 2017.

However, the country doesn't face the economic problems faced by other countries. Therefore the Phillips curve and economic laws in the country should not be used to look at economic issues faced by the country. The high unemployment rate as well as inflation faced by country is mainly because of security concerns and the ongoing civil war between militias and government supporters that has forced most of the citizens to stay inside their home.