Refer to the following figure when answering Figure 12.10: Output Gap: 1990-2000 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve) -Consider Figure 12.10, which shows the output gap $( \tilde { Y } )$ from 1990 to 2000, by quarter. If this is all the information you have, during the period 1997.1-1999.4, from the Phillips curve, you would conclude that: A) inflation is accelerating, $\Delta \pi 0$ B) inflation is decelerating, $\Delta \pi

Question

Refer to the following figure when answering  
Figure 12.10: Output Gap: 1990-2000 
 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.10, which shows the output gap $( \tilde { Y } )$ from 1990 to 2000, by quarter. If this is all the information you have, during the period 1997.1-1999.4, from the Phillips curve, you would conclude that:
A) inflation is accelerating, $\Delta \pi > 0$ 
B) inflation is decelerating, $\Delta \pi < 0$ 
C) unemployment is falling 
D) unemployment is rising 
E) Not enough information is given.

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering  
Figure 12.10: Output Gap: 1990-2000 
 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.10, which shows the output gap $( \tilde { Y } )$ from 1990 to 2000, by quarter. If this is all the information you have, during the period 1997.1-1999.4, from the Phillips curve, you would conclude that:
A) inflation is accelerating, $\Delta \pi > 0$ 
B) inflation is decelerating, $\Delta \pi < 0$ 
C) unemployment is falling 
D) unemployment is rising 
E) Not enough information is given.

Refer to the Following Figure When Answering Figure (Y~)( \tilde { Y } )(Y~)

Refer to the Following Figure When Answering
Figure $( \tilde { Y } )$