-Consider Two Economies

Multiple Choice

-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.