The traditional short-run Phillips curve has ________ on the x axis and ________ on the y axis.
A) unemployment; inflation
B) inflation; unemployment
C) real gross domestic product (GDP); price level
D) price level; real gross domestic product (GDP)
E) real gross domestic product (GDP); inflation

Question

Quizplus · Accepted Answer

The traditional short-run Phillips curve plots unemployment on the x-axis and inflation on the y-axis, illustrating the inverse relationship between the two.

The Traditional Short-Run Phillips Curve Has ________ on the X