The initial Phillips curve relationship implied that the opportunity cost of __________ __________ was higher __________.

Question

If high unemployment lasts a long time, it could cause potential real GDP to fall. (true or false)

Answer 1

The initial Phillips curve relationship implied that the opportunity cost of __________ __________ was higher __________.

Answer 2

The Phillips curve plotted inflation against unemployment. So two correct answers:

low inflation/unemployment or
low unemployment/inflation

Answer 3

reducing, unemployment, inflation