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

Neoclassical economists tend to focus more on inflation rather than cyclical unemployment. They believe that the economy naturally tends towards full employment through market mechanisms, and any persisting unemployment is more likely due to structural factors. The focus on inflation stems from the belief that when the economy is at or near full employment, the primary concern is price stability and maintaining the value of money, as inflation erodes purchasing power and can lead to inefficient resource allocation. Neoclassical economists emphasize the role of expectations and credibility of monetary policy in controlling inflation and the importance of sound fiscal and monetary policies to ensure price stability.