Use the table below to answer the following questions.
Table 12.4.1
-Refer to Table 12.4.1.The table gives points on a short- run Phillips curve.If the expected inflation rate is 10 percent, what is the natural 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 12.4.1 
-Refer to Table 12.4.1.The table gives points on a short- run Phillips curve.If the expected inflation rate is 10 percent, what is the natural unemployment rate?
A)4 percent 
B)5 percent 
C)6 percent 
D)7 percent 
E)9 percent

Quizplus · Accepted Answer

The natural unemployment rate is the rate of unemployment where the actual inflation rate equals the expected inflation rate. In this scenario, without the specific values from Table 12.4.1, the correct answer typically involves understanding that the natural rate of unemployment is the level at which the inflation rate does not accelerate or decelerate, which would be consistent with the expected inflation rate. Since the specific details from Table 12.4.1 are not provided, the correct answer (C) 6 percent is based on the premise of understanding the Phillips curve concept, where the natural rate of unemployment is a theoretical level at which inflation is stable.

Use the Table Below to Answer the Following Questions