The price level in the economy between 2014 and 2015 rose from 100 to 105.Between 2015 and 2016,the price level rose from 105 to 110.25.How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will decrease since inflation decreased.
B) The unemployment rate will decrease since inflation increased.
C) The unemployment rate will increase since inflation increased.
D) The unemployment rate would not change since there is no change in the rate of inflation.
Correct Answer:
Verified
Q3: Employees at the university have negotiated a
Q20: Which of the following best explains the
Q21: If actual inflation is less than expected
Q22: According to the short-run Phillips curve,which of
Q23: In the decade of the _,A.W.Phillips plotted
Q25: If actual inflation is less than expected
Q29: Matt's real wage in 2014 is $26.80.If
Q32: The curve showing the short-run relationship between
Q34: The key to understanding the short-run trade-off
Q40: If workers and firms expect that inflation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents