Homework Sourse50 69 45 68 35 30 25 20 67 65 64 63 61 10 05 30 35 40 45 50
5.0 69 4.5 68 3.5 3.0 $ 2.5 2.0 67 65 64 63 61 1.0 0.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 UNEMPLOYMENT RATE (Percent) 
Solution
The correct option is a) because to get lower unemployment rate the economy must face higher inflation as the two are negatively related in the above diagram. The correct option is b). This can be seen from the diagram the point on the y-axis corresponding to 3.5 on x-axis.