Use the following to answer questions:
-(Figure: Short-Run Phillips Curve) Refer to Figure: Short-Run Phillips Curve. The NAIRU is _____%.
A) 3
B) 5
C) 7
D) 8

Question

Use the following to answer questions: 
-(Figure: Short-Run Phillips Curve) Refer to Figure: Short-Run Phillips Curve. The NAIRU is _____%.
A) 3 
B) 5 
C) 7 
D) 8

Quizplus · Accepted Answer

The NAIRU (Non-Accelerating Inflation Rate of Unemployment) is the level of unemployment at which inflation does not change. It is often depicted on the Phillips Curve, which shows the inverse relationship between inflation and unemployment. Without seeing the specific figure, the correct answer cannot be determined directly from the question. However, if the question implies that the NAIRU is 5%, then option B would be the correct choice based on the information given.

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