Question
Indicate for each of the following statements, with respect to the Phillips curve, if this is false or true a) Indicates a negative relationship between
Indicate for each of the following statements, with respect to the Phillips curve, if this is false or true
a) Indicates a negative relationship between inflation and unemployment:
b) If true, the hysteresis theory raises the sacrifice ratio and the cost of recessions:
c) When there are adaptive expectations, it implies that there is persistence (inertia) in inflation:
d) Implies neutrality of money in the short term:
e) Can be derived from the sloped aggregate supply curve positive:
f)Changes in inflation expectations imply a movement on the curve:
g) Inflation would be 4% if the unemployment rate is 1 percentage point above its natural level; =0.5; and expectations are 4%:
h) If the sensitivity of inflation to cyclical unemployment is 0.5, to reduce the inflation 1 percentage point, 0.5 percentage points of unemployment must be sacrificed:
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