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Figure: Short-Run Phillips Curve
-(Figure: Short-Run Phillips Curve) Look at the figure Short-Run Phillips Curve. The NAIRU is:

Question

Use the following to answer questions :
Figure: Short-Run Phillips Curve 
-(Figure: Short-Run Phillips Curve) Look at the figure Short-Run Phillips Curve. The NAIRU is:

Quizplus · Accepted Answer

The NAIRU is the level of unemployment at which there is no cyclical unemployment, and the economy is operating at full employment. In the figure, the point where the Phillips curve intersects with the vertical axis represents the NAIRU, which is approximately 5%. Therefore, the correct answer is B.

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