The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 5 percent. Unemployment rate (percent of labor force) Price level (2016 = 100) %3D A 102.5 9. 105.0 C 107.5 4 D 110.0 Draw the four points A,B,C, and D on the short-run Phillips curve using the data in the table. Label the points. Draw the short-run Phillips curve through the points. Label it SRPC.
The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 5 percent. Unemployment rate (percent of labor force) Price level (2016 = 100) %3D A 102.5 9. 105.0 C 107.5 4 D 110.0 Draw the four points A,B,C, and D on the short-run Phillips curve using the data in the table. Label the points. Draw the short-run Phillips curve through the points. Label it SRPC.
Chapter13: Inflation
Section: Chapter Questions
Problem 11SQ
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Question
![The table describes four possible outcomes for 2017, depending on the level of
aggregate demand in that year.
Potential GDP is $12 trillion and the natural unemployment rate is 5 percent.
Inflation rate (percent per year)
12-
11-
10-
Unemployment rate
(percent of labor force)
Price level
(2016 = 100)
9-
8-
102.5
105.0
7-
107.5
6-
110.0
3
5-
Draw the four points A,B,C, and D on the short-run Phillips curve using the data in
the table. Label the points.
4-
3-
Draw the short-run Phillips curve through the points.
Label it SRPC.
2-
1-
0-
8
9
10
Unemployment rate (percent of labor force)
>>> Draw only the objects specified in the question.
emp
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98197051-446e-406b-924b-b20e8f2a63ca%2F87ddd778-02f6-477c-b708-e816a281b7fa%2Ffq0hz1s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table describes four possible outcomes for 2017, depending on the level of
aggregate demand in that year.
Potential GDP is $12 trillion and the natural unemployment rate is 5 percent.
Inflation rate (percent per year)
12-
11-
10-
Unemployment rate
(percent of labor force)
Price level
(2016 = 100)
9-
8-
102.5
105.0
7-
107.5
6-
110.0
3
5-
Draw the four points A,B,C, and D on the short-run Phillips curve using the data in
the table. Label the points.
4-
3-
Draw the short-run Phillips curve through the points.
Label it SRPC.
2-
1-
0-
8
9
10
Unemployment rate (percent of labor force)
>>> Draw only the objects specified in the question.
emp
Next
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