Given the accelerationist Phillips curve ?? = - 0.7 (U - 5 ) + ?, suppose that inflation has increased from 8 percent to 10 percent. If the unemployment rate is 4 percent, then the price shock is ________

A) 2.7 percent
B) 0.6 percent
C) 1.3 percent
D) 1 percent
E) none of the above

C