Author Question: The expression, IM, represents the value of imports in terms of A) foreign currency. B) domestic ... (Read 67 times)

SGallaher96 · **on:** Jun 30, 2018

The expression, IM, represents the value of imports in terms of

A) foreign currency.
B) domestic currency.
C) foreign goods.
D) domestic goods.
E) exports.

Question 2

Explain how the original Phillips curve differs from the expectations-augmented Phillips curve (or the modified, or accelerationist Phillips curve).

What will be an ideal response?

asdfghjkl; · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

The original Phillips curve did not take into account the effects of changes in expected inflation on inflation. The expectations-augmented Phillips curve did allow for changes in expected inflation to affect actual inflation.