Refer to the following figure when answering
Figure 9.4: U.S. Inflation 1990-2012
(Source: Bureau of Labor Statistics)
-Consider Figure 9.4, which shows the annual inflation rate. According to the Phillips curve, the period from about 1998 to 2000 was a period of:
A) stagnation
B) recession
C) expansion
D) None of these answers are correct.
E) Not enough information is given.

Question

Refer to the following figure when answering  
Figure 9.4: U.S. Inflation 1990-2012 
 (Source: Bureau of Labor Statistics)
-Consider Figure 9.4, which shows the annual inflation rate. According to the Phillips curve, the period from about 1998 to 2000 was a period of:
A) stagnation 
B) recession 
C) expansion 
D) None of these answers are correct. 
E) Not enough information is given.

Quizplus · Accepted Answer

According to the Phillips curve, there is an inverse relationship between inflation and unemployment. During the period from about 1998 to 2000, the inflation rate was relatively low and stable, indicating an expansionary period with low unemployment.

Refer to the Following Figure When Answering