Use the figure below to answer the following questions.

Figure 28.4.1
-Refer to Figure 28.4.1. The figure illustrates an economy's Phillips curves. What is the expected inflation rate?
A)9 percent
B)4 percent
C)2 percent
D)7 percent
E)cannot be determined without more information

Question

Use the figure below to answer the following questions.
  
Figure 28.4.1
-Refer to Figure 28.4.1. The figure illustrates an economy's Phillips curves. What is the expected inflation rate?
A)9 percent 
B)4 percent 
C)2 percent 
D)7 percent 
E)cannot be determined without more information

Quizplus · Accepted Answer

The intersection of the short-run Phillips curve (SRPC) and the long-run Phillips curve (LRPC) gives the expected inflation rate, which is 2 percent in this case.

Use the Figure Below to Answer the Following Questions