Exhibit 17-1 Inflation and Unemployment Rates in Exhibit 17-1

Multiple Choice

Exhibit 17-1 Inflation and unemployment rates In Exhibit 17-1, when the unemployment rate goes from 3 percent to 9 percent,

A) the level of inflation is unaffected.
B) the inflation rate goes from 8 percent to 14 percent.
C) the inflation rate goes from 8 percent to 3 percent.
D) the inflation rate goes to 0 percent.
E) deflation occurs.