Multiple Choice
Refer to the following figure when answering
Figure 12.10: Output Gap: 1990-2000
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.10, which shows the output gap from 1990 to 2000, by quarter. If this is all the information you have, during the period 1993.1-1993.4, from the Phillips curve, you would conclude that:
A) inflation is decelerating,
B) inflation is accelerating,
C) unemployment is falling
D) unemployment is rising
E) Not enough information is given.
Correct Answer:

Verified
Correct Answer:
Verified
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