5. The Phillips curve in the late 20th century The following table presents historical unemployment and inflation data in the United States for the years 1964 through 1968. Unemployment Rate Inflation Rate Year (Percent) (Percent) 1964 5.2 1.3 1965 1.6 1966 3.8. 2.0 1967 3.8 3.1 1968 3.6 Plot me data for these five years on the following graph. Note! You wil not be graded on how you plot the points, but plotting the points accurately on the graph will help you examine the relationship between unemployment and inflation during this period and solve the problems that fallam. (?) Data Points INFLATION RATE (Parcart) UNEMPLOYMENT RATE (Percent) Which of the following statements most accurately describes the relationship between inflation and unemployment in the United States during this time period? O The short-run Phillips curve shifted to the right after actual inflation was higher than expected. The short-run Phillips curve shifted to the left after actual inflation was lower than expected. The short-run Phillips curve remained stable. The following graph shows the short-run Phillips curve (SAC) for the United States in 1964. Drag the dot along the curve, shift the curve, or both to Wustrate what happened between 1964 and 1958. (7) BRPC INFLATION RATE UNEMPLOYMENT RATE The following graph shows the aggregate demand (AD) and short-run aggregate supply (AS) curves for the United States in 1964. Shaft the aggregate demand carve to approximate what happened between 1964 and 1968. (?) -O- AD AS AS PRICE LEVEL OUTPUT Grade It Now Save & Continue Continue without saving