Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? O The short-run Phillips curve shifted to the right after actual inflation was higher than expected. O The short-run Phillips curve shifted to the left after actual inflation was lower than expected. O The short-run Philip curve remained stable. The following graph shows the short-run Philips curve (SRPC) for the United States in 1964. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1964 and 1968. SRPC skPc UNEMPLOYMENT RATE The following graph shows the aggregate demand (AD) and short-run aggregate supply (AS) curves for the United States in 1954. Shift the aggregate demand curve to approximate what happened between 1964 and 1968. AD AS AS OUTPUT INFLATION RATE PRICE LEVEL

Which of the following statements best describes the relationship between inflation and unemployment in the United States during this time period? O The short-run Phillips curve shifted to the right after actual inflation was higher than expected. O The short-run Phillips curve shifted to the left after actual inflation was lower than expected. O The short-run Philip curve remained stable. The following graph shows the short-run Philips curve (SRPC) for the United States in 1964. Drag the dot along the curve, shift the curve, or both to illustrate what happened between 1964 and 1968. SRPC skPc UNEMPLOYMENT RATE The following graph shows the aggregate demand (AD) and short-run aggregate supply (AS) curves for the United States in 1954. Shift the aggregate demand curve to approximate what happened between 1964 and 1968. AD AS AS OUTPUT INFLATION RATE PRICE LEVEL

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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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.
according to phillips curve use the data of unemployment rate and inflation rate , calculate the follwing and interpret the result. years inflation rate % unemployment rate % 2015 2.53 3.75 2016 3.77 3.79 a) change in inflation b) change in unemployment c) Output lost d) Sacrifice ratio
4.) There are 80 million citizens in an economy. 45 million people are in the labor force and 1.8 million are unemployed.a) Calculate the unemployment rate.b) The natural rate of unemployment is 5%. How will the inflation rate change?c) Due to the progress of digitalization, the natural rate of unemployment decreases to 3.5% in the next year. However, the actual unemployment rate initially remains constant due to other effects. How does the inflation rate change?
The annual data for the US economy in the 1960s are given below (A) Show these data graphically. (B) From 1966 through 1969, the unemployment rate was virtually unchanged, yet the inflation rate rose almost 3%. Why did it rise that much? (C) In 1974, the unemployment rate was 5.6%. What would have been the projected inflation rate using the Phillips curve based on these data alone? The actual inflation rate that year was 11.0%. What factors accounted for the additional inflation? (D) The inflation rate fell from 12.5% in 1980 to 3.8% in 1982 (on a monthly average basis) even though the unemployment rate rose ‘‘only’’ 2.6% during those two years. What other factors caused the inflation rate to decline so quickly?