Consider each table below. Is the data presented consistent with the Phillips curve model of wage determination? Each table has a point A and a point B. Start your answer with true/false/uncertain.

a. The natural rate of unemployment is 5%. Point Unemployment rate Expected inflation (percent) Percent increase in wages A 6% 3% 3% B 6% 2% 2%

b. The natural rate of unemployment is 5%. Point Unemployment rate Expected inflation (percent) Percent increase in wages A 4% 2% 3% B 3% 2% 2%

c. The natural rate of unemployment is 4%. Point Unemployment rate Expected inflation (percent) Percent increase in wages A 4% 6% 7% B 4% 2% 3%

Point Unemployment rate Expected inflation (percent) Percent increase in wages A 12% 2% 0% B 12% –2% 0%