Macroeconomics 11th Edition by Michael Parkin

تمرين 12

Inflation and Unemployment: The Phillips Curve
Use the following information to work Problem.
An economy has an unemployment rate of 4 percent and an inflation rate of 5 percent a year at point A in the figure.

Some events occur that move the economy in a clockwise loop from A to B to D to C and back to A.
Draw in the figure the sequence of the economy's short-run and long-run Phillips curves.