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define the following statement, is it true, false or uncertain? please answer in detailed explanation.

A.4 In Canada as well as elsewhere the slope of the Phillips curve the relationship between inflation and cyclical unemployme
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Answer #1

The statement is true. The reason behind the flattening of Phillip's curve is - As the prices become more flexible and the output gap becomes less volatile and less correlated with the output deviation. As a result, inflation which is directly related to output gap less correlated with output deviation.

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