The short-run Phillips curve shows a relationship between the
A)inflation rate and real GDP.
B)inflation rate and the unemployment rate.
C)unemployment rate and the interest rate.
D)price level and real GDP.
E)inflation rate and the interest rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates the inverse relationship between the inflation rate and the unemployment rate, indicating that as inflation increases, unemployment tends to decrease, and vice versa, in the short run.

The Short-Run Phillips Curve Shows a Relationship Between the