Some historic figures for US inflation and unemployment are presented here:

Year	Inflation Rate (%)	Unemployment Rate (%)
1996	3.0	5.4
1997	2.3	4.9
1998	1.6	4.5
1999	2.2	4.2
2000	3.4	4.0
2001	2.8	4.7

a) In what years does the inflation rate rise compared to the previous year?

b) What are the unemployment rates for the years when inflation rises?

c) Based on these data, in most years NAIRU (Non-accelerating inflation rate of unemployment was: [pick one]

1. between 4.2% and 5%. In most years it was below 5% but inflation rose when the unemployment rate was 4.2%.
2. above 5%. For most years it was above 5%.
3. below 4.2%. When there was inflation the rate was 4.0%.
4. some unknown rate since there is insufficient information.

Answer rating: 100% (QA)

Years with Inflation Rate Increase Compared to Previous Year 1996 305 to 1997 234 200... View the full answer