Please show me step-by-step explanations, please. Thank you. Hint: Use the graph to answer the following questions. Click on any black point (plus symbol) on the graph to get its exact coordinates.What happened to the inflation rate between the year when the unemployment rate was 5.5% and the year when it was 4.5%?O The inflation rate decreased from 1.9% to 1.5%.O The inflation rate decreased by 2 percentage points.O The inflation rate increased from 4% to 5%.O The inflation rate increased by 0.5 percentage points.The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. If the inflation rate had been 4% during the1960s, the unemployment rate would have had to go up by how many percentage points to reduce inflation to 3%?O 2.8O 0.2O 2.0O 1.2 1. The inflation-unemployment relationshipThe following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969.5.0694.5684.03.567+663.02.52.06564621.56361+1.00.53.03.54.04.55.05.56.06.57.0UNEMPLOYMENT RATE (Percent)INFLATION RATE (Percent)

Philips curve depicts the inverse relationship existing between the unemployment rate and the…

Answered: Please show me step-by-step…

Business

Economics

Please show me step-by-step explanations, please. Thank you.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 7WNG

See similar textbooks

Related questions

Q: Why are widely accepted, well-defended scientific explanations called “theories”?

A: Theories are a thoughtful and judicious kind of dynamic or summing up contemplating a statement, or…

Q: Can I also have answers D and E? Thank you!!!

A: The loanable funds market describes the process of borrowing. Savings provide the source of loanable…

Q: I need help in solving this question because I'm not sure it's right?

A: The United State federal government passed the American Recovery and Reinvestment Act in 2009 was to…

Q: If you are the employer of a business establishment, how will you apply utilitarianism using…

A: The utilitarian is used by the business firms to analyze and evaluate the decisions in light of its…

Q: Why is the answer different to the answers for this question? The questions are all the same.

A: The questions are all not the same. Here is only one question. And rest are the option of the…

Q: Are options b through h correct or incorrect?

A: The question is asking about the possible reasons for which imports can be limited. Different…

Q: Why is this answer different to the other answers for the same question?

A: Cournot model is an economic model wherein contending firms pick an amount to create freely and all…

Q: If you suspect the presence of multicollinearity, how would you characterize the degree of…

A: Classical Linear Regression Model (CLRM) is the basic model of econometrics. The following are the…

Q: Which of the following factors do rational actor consider LEAST? a. cost to the producer b. personal…

A: Rational choice theory: It refers to a theory in which individuals use rational calculations to make…

Q: What is incrementalism? How does it impact decision making? How does it differ from the…

A: Incrementalism was first evolved during the 1950s by the American political scientist Charles E.…

Q: describe at least three ways in which human decision making differs from that of the rational…

A: Rational behaviour is a kind of behaviour in which the consumer make decisions with the motive of…

Q: Which of the following statements is correct?

A: c) A company must use LIFO for financial reporting if it uses it for tax purposes.

Q: Mahatma Gandhi once said “Happiness is when what you think, what you say, and what you do are in…

A: The great aim of life to have is happiness, it is something needed to be worked on every day. Being…

Q: Thanks for your answer. Can you explain in a little more detail?

A: Negative externality refers to when the production or consumption results in a cost to the third…

Q: Adam Smith most likely agree?

A: Laissez-faire is an economic system in which transactions between private groups of people are free…

Q: I need help with explanation for answer

A: In the economic system, the merging or the combination actually defines the social community and in…

Q: Are options b through e correct or incorrect?

A: A price ceiling is the commanded most extreme amount a dealer is permitted to charge for a product.…

Q: Discuss it objectively

A: Through the movement of air in the atmosphere, the flow of water in rivers, and the migration of…

Q: The main risk of linking KPls to incentives is that A Your KPIS may not be linked to your business…

A: The main risk of linking KPIs to incentives is that D. People may manipulate the KPIs as an…

Q: Explain why the Institutionalists’ stress on the role of ‘institutions’ in economics decision making…

A: Institutions regulates the costs of economic transactions in a country. They stimulate development…

Q: 32. The Fisher effect creates a link between and

A: Relationship between inflation rates and unemployment is depicted by the Phillips curve.

Q: Economic value is a utilitarian concept - do you agree or disagree? briefly explair and justify your…

A: Utilitarianism is a moral philosophy that promotes activities that bring happiness or pleasure while…

Q: What is value-based- purchasing, was it successful for reducing unnecessary utilization.

A: Payments to health-care providers are linked to improved performance. This method of payment holds…

Q: Which statement of the following is true ?

A: The cost functions like AC,TC,AVC,AFC depicts the functional relationship between output and…

Q: According to the "Scientific Method," what is the economics profession expected to do? Multiple…

A: In economics, the scientific method is used to analyze data, spot trends, and forecast outcomes.…

Q: What were Milton Friedman economic theory’s general principles and who did he advise? Could you also…

A: Milton Friedman was a Nobel Peace Prize winner and an American economist. He created a number of…

Q: Which of the following would a Laissez-Faire economist advocate in a time of economic recession

A: Laissez-faire economist advocate complete freedom of firms.

Q: Can an accountant be a good economist?

A: Economics and accounting both involve a lot of number crunching. An accountant is a profession of…

Q: Choose the best answer from the options below: If you and your friend take turns making decisions…

A: Here, it is given that two friends are making decision by taking turn on which movie to watch and in…

Q: What is the primary task of a mechanism design economist? To inform consumers about the role of…

A: Mechanism design helps to keep the interests of two different parties in an alignment for a…

Q: models are important ways of simplifying information in economics. if you were to use models to…

A: A lot of time of the researchers and scientists go into the formulation of models and then the…

Q: What is meant by "path dependence" in the context of the transition from socialism to capitalism?…

A: Transition societies move through a series of systemic changes aimed at developing market-based…

Q: objectives of decision making units of economics

A: There are 3 decision making units in the economy: Households Firms Government

Q: Write down the merits of deductive method of economics? 300 words

Q: What amount of questioning (if any) should we have concerning our moral beliefs? are there…

A: Moral beliefs associated with the queries that what's correct per ethics and what's not correct.…

Q: Can you please answer the next few parts to this question?

A: To find the equilibrium outputs we solve the reaction functions of both the firms simultaneously.…

Q: A personal economic decision that was driven by a behavioral bias rather than by pure rational…

A: The question is not clear as only a statement is given. Therefore, I will explain the statement with…

Q: involves à specific policy alternative, because it uses subjective, ethical, or moral judgments in…

A: Behavioral Economics: Behavioral Economics can be defined as the study of the elements of Economics…

Q: Whose work on decision making received a 2002 Nobel Prize?

A: Answer: Princeton University psychologist Daniel Kahneman received a 2002 Nobel Prize. He won this…

Q: What is the cost of your one year education from the eye of an accountant and eye of an economist?

A: An accountant is the one who calculates the costs and profits using only explicit costs. An…

Q: Explanation is correctly

A: Mechanism design theory is a significant step forward in current economic understanding of…

Q: Describe and illustrate the concept of the ‘Impossible Trinity’.

A: Impossible Trinity says that it is impossible to have all three of the following at the same time…

Q: Solutions for question 12

Q: Utilitarian value is an end in and of itself rather than a means to an end. a. True b. False

A: Utilitarian value is characterized as that esteem that a client/customer gets in view of an errand…

Q: I quite don't understand question a.

A: People prefer to eat two potatoes with every pound of meat. Such preferences are called as perfect…

Question

Please show me step-by-step explanations, please. Thank you.

1. The inflation-unemployment relationship
The following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969.
5.0
69
4.5
68
4.0
3.5
67
+66
3.0
2.5
2.0
65
64
62
1.5
63
61
+
1.0
0.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
UNEMPLOYMENT RATE (Percent)
INFLATION RATE (Percent)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The U.S. unemployment rate increased from 4.6 in July 2001 to 5.9 by June 2002. Without studying the subject in any detail, would you expect that a change of this kind is more likely to be due to cyclical unemployment or a change in the natural rate of unemployment? My?
What type of unemployment (cyclical, frictional, or structural) applies to each of the following: landscapers laid off in response to a drop in new housing construction during a recession. coal miners laid off due to EPA regulations that shut down coal fired power a financial analyst who quits his/her job in Chicago and is pursing similar work in Arizona printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland.
If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: A union member with a COLA wage contract Someone with a large stash of cash in a safe deposit box A bank lending money at a fixed rate of interest A person who is not due to receive a pay raise for another 11 months
Under what condition would an increase in the unemployment rate be a positive sign?
Under what condition would a decrease in unemployment be bad for the economy?