The economy is currently producing 5% less output than its potential. In an attempt to boost output, the federal government announces an unexpected stimulus package that you expect will increase output to 5% above potential. a. Move the point on the Phillips curve to illustrate the relationship between unexpected inflation and the output gap after the stimulus. Phillips Curve Unexpected Inflation Output gap -12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 -4 -3 -2 -1 0 1 2 3 4 b. The initial unemployment rate before the stimulus was 7.5%, and the final unemployment rate afterward is 2.5%. On the labor market Phillips curve, show the equilibrium unemployment rate. Labor Market Phillips Curve Unexpected Inflation Unemployment Rate

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.