Question

Which of the following would show

deflationary pressure?

A. Less than 2%.
B. Over 10%.
C. Between 4 and 5%.
ES
All Rial

Answer 1

I believe it would be A

Step-by-step explanation:

At low unemployment (3%), the Phillips curve shifts up from the one through point B to the one through point C when expected inflation rises from 3% to 5%.

I hope this helps