The Phillips curve depicts that, in general, _______ amounts of unemployment in an economy will coincide with _______ inflation.
A) high; low
B) low; low
C) high; high
D) low; negative

Question

Quizplus · Accepted Answer

The Phillips curve depicts an inverse relationship between unemployment and inflation, meaning that as unemployment decreases, inflation tends to increase. Therefore, the correct choice is A, high amounts of unemployment in an economy will coincide with low inflation.

The Phillips Curve Depicts That, in General, _______ Amounts of Unemployment