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The Phillips curve: foundational concepts

AP.MACRO: POL‑1 (EU), POL‑1.A (LO), POL‑1.A.3 (EK)

Problem

The following economic measurements were collected during May 2018 in Hamsterville:
MeasureValue in 2018
Current real GDP$210 million
Potential real GDP$200 million
Current rate of unemployment5%
Natural rate of unemployment6%
Current rate of inflation4%
Current real interest rate7%
Which of these graphs correctly illustrates the economy’s current condition using a Phillips curve model?
Choose 1 answer:
Choose 1 answer: