I would need help with this question from a mock test.

According to the revised version of the Phillips curve, as shown in the figure, if the rate of inflation last year was 3 per cent and the bargaining gap this year and next year is 1 per cent, then inflation this year and next will be: Wage-setting curve Real wage 2% = Bargaining gap Price-setting curve Employment, N Phillips curve Inflation rate, 7 (%%) bargaining gap (2%) Expected inflation (3%) U - 3% Employment, N Employment at Labour market equilibrium, no bargaining gap (U = 6%) Select one correct answer O 4 per cent then 5 per cent. O 3 per cent then 2 per cent. O 3 per cent then 4 per cent. O 4 per cent then 3 per cent