According to the Phillips curve, other things being equal, inflation depends positively on:
A)expected inflation.
B)the unemployment rate.
C)the rate of technological change.
D)the quantities of capital and labour.

Question

Quizplus · Accepted Answer

The Phillips curve suggests that inflation is positively related to expected inflation, as higher expected inflation can lead to higher actual inflation through wage and price-setting behavior.

According to the Phillips Curve, Other Things Being Equal, Inflation