1. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969. Hint: Use the graph to answer the following questions. Select any blue point (circle symbol) on the graph to get its exact coordinates. INFLATION RATE (Percent) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1969 O 3.0 3.5 1968 1967 4.0 1965 5.0 O 1964 962 O 1963 4.5 5.5 6.0 UNEMPLOYMENT RATE (Percent) 1961 6.5 7.0 Scratch Point (?) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? O A lower unemployment rate is associated with a lower inflation rate. O There is a trade-off between unemployment and inflation. O There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. Use the black point (plus symbol) to help you answer the questions that follow. (Note: You will not be graded for any adjustments made to the graph.)

1. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969. Hint: Use the graph to answer the following questions. Select any blue point (circle symbol) on the graph to get its exact coordinates. INFLATION RATE (Percent) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1969 O 3.0 3.5 1968 1967 4.0 1965 5.0 O 1964 962 O 1963 4.5 5.5 6.0 UNEMPLOYMENT RATE (Percent) 1961 6.5 7.0 Scratch Point (?) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? O A lower unemployment rate is associated with a lower inflation rate. O There is a trade-off between unemployment and inflation. O There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. Use the black point (plus symbol) to help you answer the questions that follow. (Note: You will not be graded for any adjustments made to the graph.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 7P

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Similar questions

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