Some historic figures for US inflation and unemployment are presented here: Year Inflation Rate (%) Unemployment Rate
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Question:
Some historic figures for US inflation and unemployment are presented here:
Year | Inflation Rate (%) | Unemployment Rate (%) |
---|---|---|
1996 | 3.0 | 5.4 |
1997 | 2.3 | 4.9 |
1998 | 1.6 | 4.5 |
1999 | 2.2 | 4.2 |
2000 | 3.4 | 4.0 |
2001 | 2.8 | 4.7 |
a) In what years does the inflation rate rise compared to the previous year?
b) What are the unemployment rates for the years when inflation rises?
c) Based on these data, in most years NAIRU (Non-accelerating inflation rate of unemployment was: [pick one]
- between 4.2% and 5%. In most years it was below 5% but inflation rose when the unemployment rate was 4.2%.
- above 5%. For most years it was above 5%.
- below 4.2%. When there was inflation the rate was 4.0%.
- some unknown rate since there is insufficient information.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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