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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) 1969 5.2 4.5 1988 85 1967 20 1.5 10 0.5 1960 1984 1963 1981 0 2.0 3.5 40 4.5 5.0 5.5 GO 4.5 7.0 UNEMPLOYMENT RATE (Percent) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. A lower unemployment rate is associated with a lower inflation rate. There is tradeoff between unemployment and inflation. If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 2.7% 6.0% O 5.5% ○ 3.0% 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) 1969 5.2 4.5 1988 85 1967 20 1.5 10 0.5 1960 1984 1963 1981 0 2.0 3.5 40 4.5 5.0 5.5 GO 4.5 7.0 UNEMPLOYMENT RATE (Percent) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. A lower unemployment rate is associated with a lower inflation rate. There is tradeoff between unemployment and inflation. If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 2.7% 6.0% O 5.5% ○ 3.0% 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
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 36P: If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor...
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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) 1969 5.2 4.5 1988 85 1967 20 1.5 10 0.5 1960 1984 1963 1981 0 2.0 3.5 40 4.5 5.0 5.5 GO 4.5 7.0 UNEMPLOYMENT RATE (Percent)
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) 1969 5.2 4.5 1988 85 1967 20 1.5 10 0.5 1960 1984 1963 1981 0 2.0 3.5 40 4.5 5.0 5.5 GO 4.5 7.0 UNEMPLOYMENT RATE (Percent)
Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. A lower unemployment rate is associated with a lower inflation rate. There is tradeoff between unemployment and inflation. If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 2.7% 6.0% O 5.5% ○ 3.0% Based on the graph, to reduce the inflation rate from 3.5% to 1.5%, the unemployment rate should points. by percentage
Transcribed Image Text:Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. A lower unemployment rate is associated with a lower inflation rate. There is tradeoff between unemployment and inflation. If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been: 2.7% 6.0% O 5.5% ○ 3.0% Based on the graph, to reduce the inflation rate from 3.5% to 1.5%, the unemployment rate should points. by percentage
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