The following question are based on the following graph, which shows the relationship between price levels and unemployment:

-If the rate of unemployment is 5 percent,the annual rate of change in prices is ________ percent.
A) 7
B) 4
C) 3
D) 2
E) 1

Question

The following question are based on the following graph, which shows the relationship between price levels and unemployment:
 
-If the rate of unemployment is 5 percent,the annual rate of change in prices is ________ percent.
A) 7 
B) 4 
C) 3 
D) 2 
E) 1

Quizplus · Accepted Answer

The correct answer is A because the rate of unemployment and the annual rate of change in prices are inversely related. This means that when the rate of unemployment is high, the annual rate of change in prices is low, and vice versa.

The Following Question Are Based on the Following Graph, Which