Refer to the following figure when answering the following questions.
Figure 9.5: U.S. Inflation 1960-2015 (Source: Bureau of Labor Statistics)
-Consider Figure 9.5, which shows the annual inflation rate. According to the Phillips curve, the period from about 2009 to 2010 was a period of:
A) a slumping economy.
B) a booming economy.
C) stagnation.
D) macroeconomic equilibrium.
E) Not enough information is given.

Question

Refer to the following figure when answering the following questions.
Figure 9.5: U.S. Inflation 1960-2015  (Source: Bureau of Labor Statistics)
-Consider Figure 9.5, which shows the annual inflation rate. According to the Phillips curve, the period from about 2009 to 2010 was a period of:
A) a slumping economy. 
B) a booming economy. 
C) stagnation. 
D) macroeconomic equilibrium. 
E) Not enough information is given.

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between the rate of inflation and the rate of unemployment in an economy. A period of low inflation, such as from 2009 to 2010, typically indicates a slumping economy with higher unemployment rates.

Refer to the Following Figure When Answering the Following Questions