Along the short-run Phillips curve SRPC₀ the expected inflation rate is
A) 3 percent.
B) 6 percent.
C) 7 percent.
D) an amount that can be determined from the figure, but none of the above answers are correct.
E) an amount that cannot be determined from the figure.

Question

Quizplus · Accepted Answer

Along the short-run Phillips curve SRPC₀, the expected inflation rate is given by the intersection of the curve with the vertical axis, which is at 3 percent in the given figure.

Along the Short-Run Phillips Curve SRPC₀ the Expected Inflation Rate