Question: true or false? Suppose that inflation expectations do not change and that empirical analysis reveals that the slope of the Phillips curve is 0 .

true or false? Suppose that inflation expectations do not change and that empirical analysis reveals that the slope of the Phillips curve is 0.5. Also suppose that inflation is 8% and that joblessness is 4%, which is its natural rate. Claim: If policymakers want to reduce inflation to 5%, they will need to accept the joblessness rate rising to 10%.

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