Why do the unexpected inflation and output gap axes need to extend into the negative regions in the Phillips curve diagram? Group of answer choices Both output gaps and unexpected inflation can be negative or positive. Both output gaps and unexpected inflation always begin by being negative. Negative inflation gaps are very common. Negative output gaps are very common.
Why do the unexpected inflation and output gap axes need to extend into the negative regions in the Phillips curve diagram? Group of answer choices Both output gaps and unexpected inflation can be negative or positive. Both output gaps and unexpected inflation always begin by being negative. Negative inflation gaps are very common. Negative output gaps are very common.
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 10QP
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Question
Why do the unexpected inflation and output gap axes need to extend into the negative regions in the Phillips curve diagram?
Group of answer choices
Both output gaps and unexpected inflation can be negative or positive.
Both output gaps and unexpected inflation always begin by being negative.
Negative inflation gaps are very common.
Negative output gaps are very common.
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