True, False or Uncertain

True, False or Uncertain. 1. The philips cuve relation implies that when output is below its natural level, the inflation rate increases. 2. The modified Philips curve captures well the aggregate supply relation in the U.S. today. 3. The U.S. unemployment rate will not increase as long as there is positive output growth. 4. In Lucas and Sargent were right, it would be possible to decrease inflation without an increase in unemployment. True, False or Uncertain.1. The philips cuve relation implies that when output is below its natural level, the inflationrate increases. – FALSEPhilips Curve deals with the underlying theory of…

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