A Phillips Curve postulates a negative relationship between inflation and economic slack. However, the relationship between wage
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A Phillips Curve postulates a negative relationship between inflation and economic slack. However, the relationship between wage inflation and lagged unemployment appeared more negative in the 1960s than in the period since 2000. In the macroeconomic model presented in this chapter, which curve would be altered by this “flattening” of the Phillips Curve?
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Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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