Use the table below to answer the following questions.
Table 28.4.1

-Refer to Table 28.4.1. The table gives points on the short-run Phillips curve for the country of Ruritania. If the expected inflation rate is 10 percent, and the inflation rate unexpectedly rises to 12 percent, what is the unemployment rate?
A)4 percent
B)5 percent
C)6 percent
D)7 percent
E)9 percent

Question

Use the table below to answer the following questions.
Table 28.4.1
 
-Refer to Table 28.4.1. The table gives points on the short-run Phillips curve for the country of Ruritania. If the expected inflation rate is 10 percent, and the inflation rate unexpectedly rises to 12 percent, what is the unemployment rate?
A)4 percent 
B)5 percent 
C)6 percent 
D)7 percent 
E)9 percent

Quizplus · Accepted Answer

The correct answer is A. When the expected inflation rate is 10 percent and the actual inflation rate is 12 percent, the unemployment rate is 4 percent, according to the table.

Use the Table Below to Answer the Following Questions