The Difference Between the Phillips Curve and the Expectations Phillips

question 5

Multiple Choice

The difference between the Phillips curve and the expectations Phillips curve is that the

• A) expectations Phillips curve takes into account expectations of inflation.
• B) Phillips curve takes into account expectations of inflation.
• C) Phillips curve is flatter.
• D) Phillips curve is steeper.

---

Definitions:

iPads

A line of tablet computers designed, developed, and marketed by Apple Inc., known for their touch screen interface and wide range of applications.

Laptop Computers

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with advanced computing capabilities.

Income Effect

The variation in a person's or an economy's earnings and the impact of this variation on the demand for a specific product or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.