Refer to the information provided in Figure 28.8 below to answer the question(s) that follow. Figure 28.8
-Refer to Figure 28.8. Expected inflation at Point C equals

Question

Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.  Figure 28.8
-Refer to Figure 28.8. Expected inflation at Point C equals

Quizplus · Accepted Answer

According to the Phillips curve, there is an inverse relationship between unemployment rate and inflation rate. At point C, the unemployment rate equals the natural rate of unemployment, which corresponds to an expected inflation rate of 5%. Therefore, the answer is B.

Refer to the Information Provided in Figure 28