
-Refer to Figure 13.5. If the economy's institutions and wage bargaining practices change to make wage rate increases more sensitive to output gaps and unemployment rates, the Phillips curve:
A) would be vertical like V.
B) would be horizontal and therefore flatter than W.
C) would change its slope as illustrated by a movement from curve X to curve W.
D) would change its slope as illustrated by a movement from curve W to curve X.
Correct Answer:
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Q45: In its simplest form, the Phillips curve
Q46: The Phillips curve is important to macroeconomic
Q47: Which one of the following statements is
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