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The graph below shows a shift in the LRPC in an economy due to increased automation. The graph shows a horizontal axis labeled unemployment rate
The graph below shows a shift in the LRPC in an economy due to increased automation. The graph shows a horizontal axis labeled unemployment rate percent and a vertical axis labeled inflation percent. There is a line segment labeled s r p c that falls from left to right. Two vertical lines labeled I r p c a and I r p c b are drawn perpendicular to the horizontal axis from the points labeled 8 percent and 10 percent respectively to intersect the line segment. A horizontal line labeled 3 percent is drawn perpendicular to the vertical axis and intersects the slant line segment at the point corresponding to 10 percent on the horizontal axis. A horizontal line labeled 5 percent is drawn perpendicular to the vertical axis and intersects the slant line segment at the point corresponding to 8% on the horizontal axis. What are the economy's new equilibrium inflation rate and unemployment rate? (1 point) The new equilibrium inflation is 3%, and the new equilibrium unemployment rate is 10%. The new equilibrium inflation is 3%, and the new equilibrium unemployment rate is 8%. The new equilibrium inflation is 5%, and the new equilibrium unemployment rate is 10%
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