The Phillips curve for the United States in the 1960s shown in Figure 4 becomes very steep

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The Phillips curve for the United States in the 1960s shown in Figure 4 becomes very steep after unemployment drops below 4%, and rather shallow as unemployment exceeds 6%. Why a typical Phillips curve is shaped this way?

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Core Macroeconomics

ISBN: 978-1464191435

3rd edition

Authors: Eric Chiang

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Question Posted: Dec 08, 2015 05:54 AM

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The Phillips curve for the United States in the 1960s shown in Figure 4 becomes very steep

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When the economy has a lot of slack say when unemployment ...View the full answer

Core Macroeconomics

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