Ask Question
2 April, 09:27

Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.

What is the slope of Japan's short-run Phillips curve?

a. Steep downward slopeb. Flat downward slopec. Steep upward sloped. Flat upward slopee. Verticalf. Horizontal

+5
Answers (1)
  1. 2 April, 10:33
    0
    Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.

    What is the slope of Japan's short-run Phillips curve?

    Option B is the correct answer.

    Explanation:

    The slope of Japan's short-run Phillips curve will be a flat downward slope because "it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate".

    Therefore, option B is the correct answer.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers