Figure 135 Alt Text for Figure 13

question 223

Multiple Choice

Figure 13.5 Alt text for Figure 13.5: In figure 13.5, a graph shows the short-run and long-run Phillips curves.
Long description for Figure 13.5: The x-axis is labelled, unemployment rate percent.The y-axis is labelled, inflation rate percent per year.A straight line labelled, short-run Philips Curve, begins at the top left corner and slopes down to the end of the x-axis.A straight line labelled, long-run Philips Curve is perpendicular to the x-axis, and begins from the x-axis value 5.5%.Long-run Philips Curve intersects the short-run Philips Curve at point (5.5%, 10%) .A point (7.5, 5) is plotted near the right end of the short-run Philips Curve.The points are connected to their respective coordinates on the x and y-axes with dotted lines.
-Refer to Figure 13.5.Consider the Phillips curves shown in the above graph.We can conclude from this graph that

• A)the natural rate of unemployment in this economy is 5.5 percent.
• B)the expected rate of inflation in this economy is 10 percent.
• C)ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run.
• D)All of the above are correct.

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Definitions:

Sensing

The process of receiving information through physical senses to understand and interact with the environment.

Judging

The process of forming an opinion or conclusion about something or someone, often based on information and reasoning.

Evaluative Beliefs

Evaluative beliefs are judgments or assessments about objects, persons, or events that reflect an individual's values and experiences.

Person-Organization Value Congruence

The degree to which an individual's values, goals, and beliefs align with the culture and values of the organization they work for.