Use the following to answer questions
Figure: Understanding Phillips Curves
-(Figure: Understanding Phillips Curves) What is the natural rate of unemployment associated with Phillips curve PC_a?

Question

Use the following to answer questions Figure: Understanding Phillips Curves -(Figure: Understanding Phillips Curves)What is the natural rate of unemployment associated with Phillips curve PC_a?

Quizplus · Accepted Answer

The natural rate of unemployment associated with Phillips curve PC_a is 4%, as shown by the intersection of the long-run Phillips curve (LRPC) with the x-axis. This represents the unemployment rate consistent with stable inflation over the long run.

Use the Following to Answer Questions