Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

The table presents the rate of inflation (consumer prices index) and the monthly percentage rate of unemployment for the USA across a six month period in 2017. What conclusions can be drawn from this table?

  • AFalling inflation leads to lower unemployment.
  • BIncreasing inflation leads to rising unemployment.
  • CThe rate of inflation correlates exactly with the rate of unemployment.
  • DThe rate of inflation has a marginal effect on the rate of unemployment.

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