PhillipsCurveQuestions

Dactualinaonis3percentandexpectedinaonis 3percent

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 
run?


 –  Jus.fy
your
answer
using
the
Phillips
curves.

 Problem
2
 •  Suppose
the
natural
rate
of
unemployment
is
6
 percent.
On
one
graph,
draw
two
Phillips
curves
that
 describe
the
four
situa.ons
listed
here.
Label
the
point
 that
shows
the
posi.on
of
the
economy
in
each
case.
 •  
a.
Actual
infla.on
is
5
percent,
and
expected
infla.on
 is
3
percent.

 •  b.
Actual
i...
View Full Document

This note was uploaded on 02/05/2014 for the course ECON 100 taught by Professor Vrooman during the Spring '07 term at Vanderbilt.

Ask a homework question - tutors are online