On the Vertical Axis, the Phillips Curve Depicts the

question 95

Multiple Choice

On the vertical axis, the Phillips curve depicts the

• A)the rate of unemployment.
• B)rate of inflation.
• C)rate of growth of nominal GDP.
• D)rate of growth of real GDP.

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Definitions:

Slope

In a linear equation, the coefficient that represents the rate of change of the dependent variable with respect to the independent variable.

Regression Slope Coefficient

A parameter in regression analysis that represents the change in the dependent variable for a one-unit change in an independent variable.

Simple Linear Regression

A statistical method to model the relationship between two variables by fitting a linear equation to observed data.

Statistically Significant

A term used to indicate that the probability of the observed data, or something more extreme, happening by chance is low under the null hypothesis.