Refer to Figure 17-5. Consider the Phillips curves shown in the ...

[stevenposner]

Refer to Figure 17-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
 
  A) the expected rate of inflation in this economy is 10 percent.
  B) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run.
  C) the natural rate of unemployment in this economy is 5.5 percent.
  D) All of the above are correct.

Question 2

List and define two types of capital income.
 
  What will be an ideal response?

[fdliggud]

Answer to Question 1

D

Answer to Question 2

(1.) Interest represents the payments made for the use of money.
(2.) Profit is the excess of revenues over cost in a given period.

[stevenposner]

Gracias!

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