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Inflation and unemployment data for Acadia can be found in the table below. Year 2018 2019 2020 Inflation Rate (%) 4.6 2.5 3.4 Unemployment Rate
Inflation and unemployment data for Acadia can be found in the table below. Year 2018 2019 2020 Inflation Rate (%) 4.6 2.5 3.4 Unemployment Rate (%) 5.6 8.8 6.7 a. Draw a graph showing the Phillips curve for Acadia based on the values for inflation and unemployment in this economy from 2018 to 2020. Plot 3 points in total to draw the Phillips curve for Acadia below. Plot the plotting points in the order 2018, 2020 and then b. The change that takes place between 2018 and 2019 could be caused by (Click to select) v stabilization polices. The change that takes place between 2019 and 2020 could have been caused by (Click to select) v stabilization polices. c. Suppose that in 2021 the inflation rate is 6% and the unemployment rate is 11%. What has happened to the Phillips curve for Acadia? What could explain this change? Because the inflation rate is (Click to select) v and the unemployment rate is (Click to select) than the values for these two variables during 2018 to 2020, the Phillips curve for Acadia has shifted (Click to select) Y This shift is likely due to a(n) (Click to select) v in (Click to select) ~ with one of the following factors as a possible cause: O A drop in labour productivity. A decrease in the consumption of durable items. O An increase in investment spending. O A reduction in input prices
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