Question

Do neoclassical economists tend to focus more on cyclical unemployment or on inflation? Explain briefly.

Short answer

Neoclassical economists focus on inflation.

Step-by-step solution

Step1: Given Information

Cyclical unemployment - It is the overall unemployment that results literally from cycles of economic upturn and downturn.

Inflation-It is the rate of increase in prices of goods and services over a given period.

Step2: Explanation

Neoclassical economists focuses more on inflation is because any attempt to resolve cyclic unemployment may only create inflation and that can create noticeable damaging effects on nation.

Step3: Final Result

Neoclassical economists focus on inflation.