-The figure above shows an economy's Phillips curves. Currently, the inflation rate is 6 percent a year. The natural unemployment rate is ________ percent and the expected inflation rate is ________ percent a year.

Question

Quizplus · Accepted Answer

The natural unemployment rate is the rate of unemployment that exists when the economy is at full employment. The expected inflation rate is the rate of inflation that people expect to occur in the future. In this case, the natural unemployment rate is 6 percent and the expected inflation rate is 4 percent.

-The Figure Above Shows an Economy's Phillips Curves