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By the economy of Samuelson, the naturalrate of unemployment is 5%, and inflation is 2%, Next year, unemployment falls to 3%. Which number is most likely to be inflation the next year? (2 points) b) 2%% c) 49% d) All of these numbers are equally likely e) None of these numbers could be the inflation rate next year 121 in the economy of Krugman, the natural rate of unemployment is 4%, and potential output is $100 billion. Right now, GDP is $110 billion. What is a possible unemployment rate in this economy? (2 points) 3% C) 5% Any of these could be the unemployment rate right now None of these could be the unemployment rate What could make unemployment and inflation rise at the same time? Hint: Try drawing AD - AS curves and then move these curves for each answer choice. (2 points) a) A war makes it so there is less oil in the world L by The government hires a lot of teachers The government fires a lot of teachers d) All of these things could make inflation and unemployment rise at the same time e) None of these events could increase inflation and unemployment at the same time 18) Nika is a dog. Nika borrows $10,000 for one year, at 10%% nominal interest. Dog food costs $2 perkibble. The next year, dog food costs $1 perkibble. () How many dollars does Nika have to pay back next year? (1 point) $20100 0 3 How many kibbles was Nika planning to have to pay back next year? (1 point) $8 How many kibbles does Nika actually have to pay back next year? (1 point) d) Based on this, does deflation help lenders, or hurt them? (2 points) think based on this deflation help lenders always heep to Producing for Dog Food e) Based on this, does deflation help borrowers, or hurt them? (2 points) COSTS