2. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and 1969. Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.) INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3.5 1967 3:0 2.5 2.0 1965 1964 1.5 1983 1961 1.0 0.5 0 3.0 3.5 40 45 5.0 5.5 6.0 8.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 1969? The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. O The inflation rate increased from 2.9% to 4.3%. ? If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3,0 25 20 1.5 1.0 0.5 1987 1965 10 3.0 3.5 4.0 4.5 5.0 1964 1983 1981 5.5 6.0 6.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 19697 The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. The inflation rate increased from 2.9% to 4.3%. + If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 3.0% 5.5% 6.0% 2.7% decrease increase Based on the graph, to reduce the inflation rate from 3.5% to 1.5%, the unemployment rate should points. by percentage
2. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and 1969. Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.) INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3.5 1967 3:0 2.5 2.0 1965 1964 1.5 1983 1961 1.0 0.5 0 3.0 3.5 40 45 5.0 5.5 6.0 8.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 1969? The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. O The inflation rate increased from 2.9% to 4.3%. ? If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3,0 25 20 1.5 1.0 0.5 1987 1965 10 3.0 3.5 4.0 4.5 5.0 1964 1983 1981 5.5 6.0 6.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 19697 The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. The inflation rate increased from 2.9% to 4.3%. + If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 3.0% 5.5% 6.0% 2.7% decrease increase Based on the graph, to reduce the inflation rate from 3.5% to 1.5%, the unemployment rate should points. by percentage
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 34P: The total price of purchasing a basket of goods in the United Kingdom over four years is: year...
Related questions
Question
Transcribed Image Text:2. The inflation-unemployment relationship
The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and
1969.
Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the
coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.)
INFLATION RATE (Percent)
1989
5.0
4.5
1988
4.0
3.5
1967
3:0
2.5
2.0
1965
1964
1.5
1983
1961
1.0
0.5
0
3.0
3.5
40
45
5.0
5.5
6.0
8.5
7.0
UNEMPLOYMENT RATE (Percent)
What happened to the inflation rate between 1965 and 1969?
The inflation rate decreased from 1.9% to 1.5%.
The inflation rate increased by 3 percentage points.
The inflation rate decreased by 2 percentage points.
O The inflation rate increased from 2.9% to 4.3%.
?
If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been:
Transcribed Image Text:INFLATION RATE (Percent)
1989
5.0
4.5
1988
4.0
3,0
25
20
1.5
1.0
0.5
1987
1965
10
3.0
3.5
4.0
4.5
5.0
1964
1983
1981
5.5
6.0
6.5
7.0
UNEMPLOYMENT RATE (Percent)
What happened to the inflation rate between 1965 and 19697
The inflation rate decreased from 1.9% to 1.5%.
The inflation rate increased by 3 percentage points.
The inflation rate decreased by 2 percentage points.
The inflation rate increased from 2.9% to 4.3%.
+
If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been:
3.0%
5.5%
6.0%
2.7%
decrease
increase
Based on the graph, to reduce the inflation rate from 3.5% to 1.5%, the unemployment rate should
points.
by
percentage
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning