The short- run Phillips curve shows the relationship between
A)the price level and real GDP in the short run.
B)inflation and unemployment, when inflation expectations can change.
C)unemployment and real GDP in the short run.
D)the price level and unemployment in the short run.
E)inflation and unemployment, when the expected inflation rate and the natural unemployment rate remain constant.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates the inverse relationship between inflation and unemployment when the expected inflation rate and the natural rate of unemployment are held constant.

The Short- Run Phillips Curve Shows the Relationship Between