The price level in the economy between 2014 and 2015 rose from 100 to 105. Between 2015 and 2016, the price level rose from 105 to 110.25. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will decrease since inflation decreased.
B) The unemployment rate would not change since there is no change in the rate of inflation.
C) The unemployment rate will increase since inflation increased.
D) The unemployment rate will decrease since inflation increased.
B
Economics
You might also like to view...
The inflation rate is best described as ___.
A. a growing economy B. nominal GDP C. an expansion D. rising prices
Economics
If you currently make $25,000 a year and the CPI rises from 110 today to 150 in five years, then you need to be making $43,333.33 in five years to have kept pace with consumer price inflation
a. True b. False Indicate whether the statement is true or false
Economics