Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. Next year, you expect GDP to be 3% below potential GDP. What is your forecast for unexpected inflation?

A)1%
B)0%
C)3%
D)-1%

Question

Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. Next year, you expect GDP to be 3% below potential GDP. What is your forecast for unexpected inflation?

A)1% 
B)0% 
C)3% 
D)-1%

Quizplus · Accepted Answer

The Answer of Suppose that in a given country, the line of best fit approximates the Phillips curve shown here. Next year, you expect GDP to be 3% below potential GDP. What is your forecast for unexpected inflation?

A)1% 
B)0% 
C)3% 
D)-1%

Suppose That in a Given Country, the Line of Best