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According to the figure below, A graph plots inflation rate versus unemployment rate.In the graph, the horizontal axis is labeled Unemployment Rate (percent) and the
According to the figure below, A graph plots inflation rate versus unemployment rate.In the graph, the horizontal axis is labeled Unemployment Rate (percent) and the vertical axis is labeled Inflation Rate (percent). The horizontal and vertical axes range from 0 to 8 in increments of 1 unit. The graph shows two falling curves labeled P C subscript 2 and P C subscript 1. Text on the top right corner reads Rightward A S shifts cause leftward Philips curve shifts. Coordinates shown by P C subscript 2 are as follows: (1, 7.0), (2, 4.0), (3, 3.0), (4, 2.0), (5, 1.7), (6, 1.2), and (7, 1.0) and coordinates shown by P C subscript 1 are as follows: (3, 7.0), (4, 5.0), (5, 4.0), (6, 3.4), and (7, 3.0). What inflation rate would occur if the unemployment rate were 5 percent, with Instructions: Round your responses to the nearest 0.5 percent (e.g., 1.0, 1.5, 2.0). a. PC1? % b. PC2? %
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