NAIRU

[hdxx]

Why would inflation begin to accelerate if it was any lower than 5%?

[Chelsea f.c.]

Please help me out so I don't have to google to understand what your asking.... basically when unemployment is low people feel secure and ask for pay rise which to facilitate means increasing prices of products workers produce and hence higher inflation... the natural rate of unemployment means that this is where output is at its natural level and any lower unemployment people are working overtime to facilitate the higher output which means more pay... if that doesn't answer your question please flesh it out