The Phillips curve shows the relationship between:
A) the unemployment rate and the level of real income.
B) the in?ation rate and the level of aggregate demand.
C) the rate of change in the price level and the unemployment rate.
D) the wage rate and the level of unemployment.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between the rate of inflation (or the rate of change in the price level) and the unemployment rate, suggesting that lower unemployment comes with higher inflation and vice versa.

The Phillips Curve Shows the Relationship Between