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Refer to the Following Figure When Answering
Figure (Y~)( \tilde { Y } )

Question 84

Multiple Choice

Refer to the following figure when answering
Figure 12.10: Output Gap: 1990-2000  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  ( \tilde { Y } )   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,  \Delta \pi < 0  B)  inflation is accelerating,  \Delta \pi > 0  C)  unemployment is falling D)  unemployment is rising E)  Not enough information is given.
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 12.10, which shows the output gap (Y~) ( \tilde { Y } ) 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, Δπ<0\Delta \pi < 0
B) inflation is accelerating, Δπ>0\Delta \pi > 0
C) unemployment is falling
D) unemployment is rising
E) Not enough information is given.

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