00:01
So here we have a phillips curve, right? and a phillips curve is a relationship between the size of the economy and inflation.
00:08
So my phillips curve here looks like this.
00:12
And this is, of course, my level of natural output.
00:15
Right.
00:16
So and the point that we're at of the phillips curve is a.
00:20
So let's go through each of these in turn.
00:22
A.
00:22
A is wrong.
00:23
Right.
00:24
Right.
00:25
Output is actually above potential output.
00:30
This economy is booming.
00:31
Right.
00:32
There is a positive output gap.
00:36
Right.
00:37
We are operating above potential output.
00:39
So a is not correct.
00:41
Potential output is yn.
00:43
This is just 100 percent...