Question
Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the full employment unemployment rate
Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU) and remained at that low level for a year or longer? Explain your answer in a few sentences.
Draw an AS/AD diagram illustrating your answer to part (A) and refer to the current state of the economy of the US to compare in this context. Be sure to label all lines and axes in your diagram clearly.
please see reference to the question as well
https://www.federalreserve.gov/newsevents/testimony/powell20200211a.htm
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