At lower rates of inflation and higher rates of unemployment, the slope of the Phillips curve is
A)very steep.
B)vertical.
C)horizontal.
D)less steep.

Question

At lower rates of inflation and higher rates of unemployment, the slope of the Phillips curve is​
A)​very steep.
B)​vertical.
C)​horizontal.
D)​less steep.

Quizplus · Accepted Answer

At lower rates of inflation and higher rates of unemployment, the slope of the Phillips curve is less steep. This means that there is less of a trade-off between inflation and unemployment. As unemployment increases, the negative relationship between inflation and unemployment becomes weaker, resulting in a flatter Phillips curve.

At Lower Rates of Inflation and Higher Rates of Unemployment