Where is the Friedman Curve?

That helps us to understand why the Friedman Curve is upward sloping, although the potential output is a vertical line. But just where are these curves located? We need more information than just the slope to pin it down. Geometry tells us that with one point and the slope, we can locate an entire line. Let's see if we can figure out the exact point at which the Friedman Curve crosses the Potential Output line. With that information and the slope, we can trace out the rest of the curve. Plus, into the bargain, we will also know the Potential Output.

Let's start with the Potential Output line, since it is a little simpler. All we need is the RGDP corresponding to it. What RGDP will it be?

Inflation and Unemployment