Refer to the following figure when answering
Figure 9.3: Phillips Curve
-Consider the Phillips curve at $\tilde { Y } _ { t , 1 }$ in Figure 9.3.Which of the following is true?
A) The economy is booming.
B) The economy is deflationary.
C) The economy is at potential output.
D) The economy is in recession.
E) Unemployment is above the natural level.

Question

Refer to the following figure when answering  
Figure 9.3: Phillips Curve 
-Consider the Phillips curve at $\tilde { Y } _ { t , 1 }$ in Figure 9.3.Which of the following is true?
A) The economy is booming. 
B) The economy is deflationary. 
C) The economy is at potential output. 
D) The economy is in recession. 
E) Unemployment is above the natural level.

Quizplus · Accepted Answer

The Phillips curve at $\tilde { Y } _ { t , 1 }$ suggests that the economy is operating above its potential output, indicating a booming economy with higher inflationary pressures.

Refer to the Following Figure When Answering Figure Y~t,1\tilde { Y } _ { t , 1 }Y~t,1​

Refer to the Following Figure When Answering
Figure $\tilde { Y } _ { t , 1 }$