-Consider two economies.Economy 1 has a steep Phillips curve and Economy 2 has a gently sloped Phillips curve.If each economy experiences an identical economic expansion,__________ would increase less in __________ and would experience a relatively __________ change in output.
A)the change in inflation;Economy 2;smaller
B)the change in unemployment;Economy 1;larger
C)the change in inflation;Economy 2;larger
D)the change in interest rates;Economy 1;smaller
E)Not enough information is given.

Question

-Consider two economies.Economy 1 has a steep Phillips curve and Economy 2 has a gently sloped Phillips curve.If each economy experiences an identical economic expansion,__________ would increase less in __________ and would experience a relatively __________ change in output.
A)the change in inflation;Economy 2;smaller 
B)the change in unemployment;Economy 1;larger 
C)the change in inflation;Economy 2;larger 
D)the change in interest rates;Economy 1;smaller 
E)Not enough information is given.

Quizplus · Accepted Answer

A gently sloped Phillips curve indicates that inflation increases less for a given decrease in unemployment.

-Consider Two Economies