Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 31, Problem 11SPPA
To determine
To explain:
The way
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Inflation at lowest rate in 5 years
Inflation rate (percent per year)
In September, inflation in the United Kingdom fell to 1.1% a year, its
lowest in 5 years. Analysts expected an inflation rate of 1.3% a year.
1.7-
Source: The New York Times, October 13, 2009
With the unemployment rate at 8 percent and the natural unemployment
rate at 6 percent, sketch the short-run Phillips curve and mark on your
graph the point which shows the situation in September. Label the point
A.
1.5-
1.3-
The unemployment rate is 8 percent and the natural unemployment rate
is 6 percent.
1.1-
Draw a point that shows the unemployment rate and the inflation rate in
September. Label it A.
0.9+
4
8
10
12
Draw a point that shows the natural unemployment rate and the expected
Unemployment rate (percent of labor force)
inflation rate. Label it B.
>>> Draw only the objects specified in the question.
Draw the short-run Phillips curve that is consistent with these data. Label
it.
of
Inflation at lowest rate in 5 years
Inflation rate (percent per year)
In September, inflation in the United Kingdom fell to 1.1% a year, its lowest in 5
years. Analysts expected an inflation rate of 1.3% a year.
1.7-
Source: The New York Times, October 13, 2009
With the unemployment rate at 8 percent and the natural unemployment rate at 6
percent, sketch the short-run Phillips curve and mark on your graph the point which
shows the situation in September. Label the point A.
1.5-
1.3-
The unemployment rate is 8 percent and the natural unemployment rate is 6
percent.
1.1-
Draw a point that shows the unemployment rate and the inflation rate in
September. Label it A.
Draw a point that shows the natural unemployment rate and the expected inflation
0.9
rate. Label it B.
10
12
Unemployment rate (percent of labor force)
Draw the short-run Phillips curve that is consistent with these data. Label it.
>>> Draw only the objects specified in the question.
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9. The Phillips curve in the late 20th century
The following table presents historical unemployment and inflation data in the United States for the years 1977 through 1981.
Year
Unemployment Rate
Inflation Rate
(Percent)
(Percent)
1977
7.1
6.5
1978
6.1
7.6
1979
5.8
11.3
1980
7.1
13.5
1981
7.6
10.3
Plot the data for these five years on the following graph.
Note: You will not be graded on how you plot the points, but plotting the points accurately on the graph will help you examine the relationship between unemployment and inflation during this period and solve the problems that follow.
Chapter 31 Solutions
Foundations of Economics (8th Edition)
Ch. 31 - Prob. 1SPPACh. 31 - Prob. 2SPPACh. 31 - Prob. 3SPPACh. 31 - Prob. 4SPPACh. 31 - Prob. 5SPPACh. 31 - Prob. 6SPPACh. 31 - Prob. 7SPPACh. 31 - Prob. 8SPPACh. 31 - Prob. 9SPPACh. 31 - Prob. 10SPPA
Ch. 31 - Prob. 11SPPACh. 31 - Prob. 1IAPACh. 31 - Prob. 2IAPACh. 31 - Prob. 3IAPACh. 31 - Prob. 4IAPACh. 31 - Prob. 5IAPACh. 31 - Prob. 6IAPACh. 31 - Prob. 7IAPACh. 31 - Prob. 8IAPACh. 31 - Prob. 9IAPACh. 31 - Prob. 10IAPACh. 31 - Prob. 1MCQCh. 31 - Prob. 2MCQCh. 31 - Prob. 3MCQCh. 31 - Prob. 4MCQCh. 31 - Prob. 5MCQCh. 31 - Prob. 6MCQ
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