Once you have connected the output gaps from the IS-MP model and the Phillips curve, the next step is to identify the:
A)price level from the Phillips curve.
B)unexpected inflation from the Phillips curve.
C)potential GDP level.
D)unemployment rate from the labor market.

Question

Quizplus · Accepted Answer

The next step after connecting the output gaps from the IS-MP model and the Phillips curve is to identify the unexpected inflation from the Phillips curve. The Phillips curve illustrates the relationship between inflation and unemployment, indicating how unexpected inflation can result from deviations in actual economic output from potential output.

Once You Have Connected the Output Gaps from the IS-MP