The following table shows selected data on unemployment and inflation in the United States between 1961 and 1965. Year Unemployment Rate Inflation Rate (Percent) (Percent) 1961 6.7 1.0 1962 5.5 1.0 1963 5.7 1.3 1964 5.2 1.3 1965 4.5 1.6 Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? 1.The short-run Phillips curve shifted to the left after actual inflation was lower than expected. 2. The short-run Phillips curve remained stable. 3. The short-run Phillips curve shifted to the right after actual inflation was higher than expected. The following graph shows the short-run Phillips curve (SRPC) for the United States in 1961. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1961 and 1965.
The following table shows selected data on unemployment and inflation in the United States between 1961 and 1965. Year Unemployment Rate Inflation Rate (Percent) (Percent) 1961 6.7 1.0 1962 5.5 1.0 1963 5.7 1.3 1964 5.2 1.3 1965 4.5 1.6 Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? 1.The short-run Phillips curve shifted to the left after actual inflation was lower than expected. 2. The short-run Phillips curve remained stable. 3. The short-run Phillips curve shifted to the right after actual inflation was higher than expected. The following graph shows the short-run Phillips curve (SRPC) for the United States in 1961. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1961 and 1965.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The following table shows selected data on unemployment and inflation in the United States between 1961 and 1965.
|
Year
|
Unemployment Rate
|
Inflation Rate
|
|---|---|---|
|
(Percent)
|
(Percent)
|
|
| 1961 | 6.7 | 1.0 |
| 1962 | 5.5 | 1.0 |
| 1963 | 5.7 | 1.3 |
| 1964 | 5.2 | 1.3 |
| 1965 | 4.5 | 1.6 |
Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period?
1.The short-run Phillips curve shifted to the left after actual inflation was lower than expected.
2. The short-run Phillips curve remained stable.
3. The short-run Phillips curve shifted to the right after actual inflation was higher than expected.
The following graph shows the short-run Phillips curve (SRPC) for the United States in 1961.
Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1961 and 1965.
Transcribed Image Text:SRPC
SRPC
UNEMPLOYMENT RATE
INFLATION RATE
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