All AP Courses

Lab

Draw the Phillips Curve

Label both axes and name both curves first: the exam writes Inflation rate (%) and Unemployment rate (%), SRPC sloping down, LRPC vertical at the natural rate, marked UN. Then decide whether the situation moves the economy along SRPC1, shifts SRPC, or shifts LRPC, show it, and drag the round point to where the economy ends up.

Challenges

  1. Sort the situations into those that move the economy along SRPC1 and those that shift a curve. What do the movers along the curve have in common?
  2. For each SRPC shift, say whether expected inflation, where SRPC meets LRPC, rises or falls.
  3. Why does a change in the natural rate move LRPC but need no new point on this graph?

Topics this lab supports