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1. Assume that the applicable Phillips Curve is SRPC3. If the unemployment rate is 6%, determine the inflation rate.
2. Assume that the applicable Phillips Curve is SRPC3. What point represents an unemployment rate of 5% and an inflation rate of 4%?
3. Assume that the applicable Phillips Curve is SRPC2. If the inflation rate is 7%, determine the unemployment rate.
4. Assume that the applicable Phillips Curve is SRPC1. If macroeconomic policy makers decide to move from point A to point B, Will the unemployment rate increase or decrease? By how much?
5. Suppose the short-run Phillips Curve shifts from SRPC1 to SRPC3. At a 5% inflation rate, will the unemployment rate increase or decrease? By how much?
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