In a move to increase its openness,the Fed has consistently increased the amount of information available to the public.According to the new classical model,the Phillips curve the Fed faces should become more:

Question

Quizplus · Accepted Answer

According to the new classical model, increased openness and information availability lead to expectations adjusting more quickly, making the Phillips curve more vertical. This reflects the idea that in the long run, there is no trade-off between inflation and unemployment.

In a Move to Increase Its Openness,the Fed Has Consistently