Suppose that empirical evidence demonstrated that at a 10% inflation rate the unemployment rate was 4% and that every 2% decline in the inflation rate translated into a 1% increase in the unemployment rate. Draw a graph showing this relationship. Place the inflation rate on the vertical axis.

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The Answer of Suppose that empirical evidence demonstrated that at a 10% inflation rate the unemployment rate was 4% and that every 2% decline in the inflation rate translated into a 1% increase in the unemployment rate. Draw a graph showing this relationship. Place the inflation rate on the vertical axis.

Suppose That Empirical Evidence Demonstrated That at a 10% Inflation