1)5. Expectations and the modern view of the Phillips curve

The following graph shows the short-run Phillips curve within the expectations framework.

On the graph, place the grey star point to illustrate the situation when people accurately anticipate the inflation rate.

Land Year (Acres) Population Real GDP Real GDP per Capita 2011 20,000 500 $3,000 2012 20,000 1,000 $8,000 2013 20,000 1,500 $15,000 2014 20,000 2,000 $24,000Land Year (Acres) Population Real GDP Real GDP per Capita 2011 20,000 1,000 $12,000 $ 2012 20,000 2,000 $22,000 2013 20,000 3,000 $30,000 2014 20,000 4,000 $36,000 Rapid population growth tends to threaten economic growth in economies with land-to-labor ratios. Which of the following is a correct description of the effect of population growth on economic growth in Gribinez from 2011 to 2014? O Real GDP per capita fell initially but eventually rose as population continued to expand. O Real GDP per capita rose initially but eventually fell as population continued to expand. O Real GDP per capita rose from 2011 to 2014 as population increased. Real GDP per capita fell from 2011 to 2014 as population increased. The English economist Thomas Malthus predicted that, given limited resources such as land, population growth would cause productivity to? 6 Correct expectations ACTUAL MINUS EXPECTED RATE OF INFLATION (Percent) -1 -2 -3 -4 -5 -6 9 11 12 0 1 2 3 4 5 6 7 8 10 UNEMPLOYMENT RATE (Percent)