11. Changing the slope of the Phillips curve: Suppose the slope of the Phillips curve-the parameter v-increases. How would the results differ from the Volcker disinflation example considered in the chapter? What kind of changes in the economy might influence the slope of the Phillips curve?

11. Changing the slope of the Phillips curve: Suppose the slope of the Phillips curve-the parameter v-increases. How would the results differ from the Volcker disinflation example considered in the chapter? What kind of changes in the economy might influence the slope of the Phillips curve?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 14RQ: Would you expect to see long-run data trace out a stable downward-sloping Phillips curve?

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11. Changing the slope of the Phillips curve: Suppose the
slope of the Phillips curve-the parameter v-increases.
How would the results differ from the Volcker disinflation
example considered in the chapter? What kind of changes
in the economy might influence the slope of the Phillips
curve?

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