According to the text, the slope of the Phillips curve in the United States is about ________. Thus, if the change in inflation is 3 percent, the gap would be ________ percent.
A) 1/4; 0.25
B) 1/3; 3
C) 1/2; 2
D) 2; 0.5
E) 1/3; 1

Question

Quizplus · Accepted Answer

The slope of the Phillips curve is 1/3, meaning that for every 1 percent change in the inflation rate, the gap changes by 1/3 percent. Therefore, if the change in inflation is 3 percent, the gap would be 1 percent (3 * 1/3 = 1).

According to the Text, the Slope of the Phillips Curve