The tradeoff between inflation and unemployment
A)implies that policies designed to reduce unemployment also reduce inflation.
B)was eliminated by improved economic policies in the 1900s.
C)is a long-run tradeoff,persisting for decades,according to most economists.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The tradeoff between inflation and unemployment, known as the Phillips Curve, suggests a short-run relationship, not a long-run one. Improved policies have not eliminated this tradeoff, and reducing unemployment can often increase inflation, not reduce it.

The Tradeoff Between Inflation and Unemployment