1. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969. Hint: Use the graph to answer the following questions. Select any blue point (circle symbol) on the graph to get its exact coordinates. INFLATION RATE (Percent) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1969 O 3.0 3.5 1968 1967 4.0 1965 5.0 O 1964 962 O 1963 4.5 5.5 6.0 UNEMPLOYMENT RATE (Percent) 1961 6.5 7.0 Scratch Point (?) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? O A lower unemployment rate is associated with a lower inflation rate. O There is a trade-off between unemployment and inflation. O There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. Use the black point (plus symbol) to help you answer the questions that follow. (Note: You will not be graded for any adjustments made to the graph.)

1. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States from 1961 through 1969. Hint: Use the graph to answer the following questions. Select any blue point (circle symbol) on the graph to get its exact coordinates. INFLATION RATE (Percent) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1969 O 3.0 3.5 1968 1967 4.0 1965 5.0 O 1964 962 O 1963 4.5 5.5 6.0 UNEMPLOYMENT RATE (Percent) 1961 6.5 7.0 Scratch Point (?) Which of the following statements about the relationship between the unemployment and inflation data for 1961-1969 is true? O A lower unemployment rate is associated with a lower inflation rate. O There is a trade-off between unemployment and inflation. O There is a positive relationship between unemployment and inflation. The unemployment rate peaked at 3.5%. The points on the graph represent observations along the U.S. economy's Phillips curve during the 1960s. Use the black point (plus symbol) to help you answer the questions that follow. (Note: You will not be graded for any adjustments made to the graph.)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 29RQ: What type of unemployment (cyclical, frictional, or structural) applies to each of the following:...

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