What does the slope of the Phillips curve indicate?
A)that the opportunity cost of decreasing unemployment increases as unemployment decreases
B)that the opportunity cost of decreasing unemployment decreases as unemployment increases
C)that the opportunity cost of decreasing inflation decreases as inflation decreases
D)that the opportunity cost of decreasing inflation or unemployment is constant

Question

Quizplus · Accepted Answer

The slope of the Phillips curve indicates that as unemployment decreases, inflation tends to increase, suggesting a trade-off where the opportunity cost of reducing unemployment is higher inflation.

What Does the Slope of the Phillips Curve Indicate