Moving along the short-run Phillips curve, a _{--------------------}unemployment rate can only be achieved by paying the cost of_{--------------------} . A)lower; a lower inflation rate B)lower; a higher inflation rate C)higher; a higher inflation rate D)lower; a higher expected inflation rate E)lower; a lower price level

Question

Quizplus · Accepted Answer

In the short-run Phillips curve, a lower unemployment rate can be achieved by accepting a higher inflation rate, reflecting the trade-off between inflation and unemployment.

Moving Along the Short-Run Phillips Curve, a --------------------unemployment Rate Can

Moving Along the Short-Run Phillips Curve, a _{--------------------}unemployment Rate Can