A direct way to study inflation and unemployment is by using .
A) a Phillips curve
B) data from high inflation countries
C) data from the OECD
D) the AS- AD model

Question

Quizplus · Accepted Answer

The Phillips curve is a direct way to study the relationship between inflation and unemployment. It shows the inverse relationship between the two variables, indicating that as unemployment goes down, inflation goes up, and vice versa. The Phillips curve can help policymakers understand the trade-offs between inflation and unemployment and make informed decisions about monetary and fiscal policy. The other options provide data or models that can be useful for studying inflation and unemployment, but they are not as direct as the Phillips curve.

A Direct Way to Study Inflation and Unemployment Is by Using