# The Inflation-Unemployment RelationshipThe 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.### Graph Description:- **Axes:** - X-axis: Unemployment Rate (Percent) - Y-axis: Inflation Rate (Percent)- **Data Points:** - The graph features a downward-sloping curve with points representing each year from 1961 to 1969. - Points labeled: - 1969 at approximately (3.5%, 5.0%) - 1968 at approximately (3.7%, 4.5%) - 1967 at approximately (3.8%, 3.0%) - 1966 at approximately (3.9%, 2.5%) - 1965 at approximately (4.0%, 1.9%) - 1964 at approximately (5.0%, 1.5%) - 1963 at approximately (5.5%, 1.5%) - 1962 at approximately (5.5%, 1.2%) - 1961 at approximately (7.0%, 1.0%)### Question:What happened to the inflation rate between 1962 and 1965?- The options are: - The inflation rate decreased by 2 percentage points. - The inflation rate increased by 0.5 percentage points. - The inflation rate increased from 4% to 5%. - **The inflation rate decreased from 1.9% to 1.5%**.### Explanation:The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. The Phillips curve illustrates an inverse relationship between inflation and unemployment rates. 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. If the inflation rate had been 3.5% during the 1960s, the unemployment rate would most likely have been: - ○ 3.7% - ○ 4.5% - ○ 5.0% - ○ 6.5%2. Based on the graph, to reduce the *unemployment rate* from 5.5% to 4.5%, the inflation rate should increase by __________ percentage points.

According to the Phillips curve there is an inverse relationship between inflation and unemployment.…

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. E (Percent) 5.0 4.5 4.0 3.5 3.0 1969 1968 1967 Scratch Point

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. E (Percent) 5.0 4.5 4.0 3.5 3.0 1969 1968 1967 Scratch Point

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What is the Consumer Price Index and how is it calculated in Australia? Outline three key reasons for why inflation globally has been at multi-decade highs and what measures governments and central banks have implemented to bring it under control.
What is a quantity index? Provide the formula. Using the data below construct a quantity index across time for year 0 as base year prices. Identify the expenditure in each year, the price index, and the inflation rate from the base year. Base prices Year 0 quantities Year 1 quantities Year 2 quantities Good 1 p, = 0.7 $%1 q*, = 2x, q', = 2.2x, q°, = 2.42x, %3D Good 2 p2 = 1.05 %2 q'2 = 4x2 q'2 = 4.4x2 q²2 = 4.84x2
There are 64 unemployed people and 1,066 employed people. What is the unemployment rate? Enter a number (measured in percentage terms) rounded to two decimal places. Do not enter a % sign. ASUS f9 f10 f11 f8 O/京团 f6 f7 f5 E3 f4 X
The following equation
In August of 2020, the United States unemployment rate was 8.4%; in September, it was 7.8%. Which of the following is true? There is a 7.7% decrease in the United States unemployment rate from August to September, 2020. There is a 0.077 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.071 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.6% decrease in the United States unemployment rate from August to September, 2020. There was a 7.1% decrease in the United States unemployment rate from August to September, 2020.
Okun's Law is defined as: Change in the unemployment rate = - x(g-2%) If the unemployment rate is 3.6% and real GDP grows by 0.5%, the new unemployment rate is %. (Round your response to one decimal place.) Enter your answer in the answer box and then click Check Answer.
In macroeconomics, how can you tell when someone has worked too hard or too little during a period of inflation? Please answer numerically and graphically.
Ellen is downloading labor market data for the most recent month, but her connection is slow. So far this is all she has been able to collect: Unemployment rate 6% Participation rate 62.5% Not in the labor force 63.5 million Find the labor force, the working-age population, the number of employed workers, and the number of unemployed workers.Instructions: Enter your responses rounded to one decimal place.Labor force: millionWorking-age population: millionNumber of employed workers: millionNumber of unemployed workers: million
Given the numbers in the table, what is the unemployment rate, in percent? (Assume everyone is included in one of the categories.) Round to one decimal place and do not enter the % sign. If your answer is 6.14%, enter 6.1. If your answer is 6.15%, enter 6.2. If appropriate, remember to enter the sign. Category Working Full Time Working Part Time Not Working, Searching for a job Not Working&Not searching for a job; <65 years old Not Working & Not Searching: Full Time Student 15 years old Not Working & Not Searching: Full Time Student 15 years old Not Working, Retired (not searching) 11.1 Number 350 50 50 30 80 20 100
Make an inflation rate forecasts graph based on the description. I need help please. Based on our analysis of the last ten years of inflation data, we project that inflation rates in the Philippines under the Marcos administration will remain relatively stable over the next five years. From 2011 to 2020, inflation rates in the country ranged from 1.2% to 6.7%, with an average of 3.4%. For the next five years, we expect inflation rates to remain within the range of 2.5% to 4.5%, with an average of 3.5%.
If the labor force of 160 million people is growing by 1.2 percent this year, how many new jobs have to be created each month to keep unemployment from increasing?
A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What’s the unemployment rate? What share of population is in the labor force? (Show your work in your answer.)