On the vertical axis, the Phillips curve depicts the
A)the rate of unemployment.
B)rate of inflation.
C)rate of growth of nominal GDP.
D)rate of growth of real GDP.

Question

Quizplus · Accepted Answer

The Phillips curve shows the relationship between the rate of inflation and the rate of unemployment, with inflation on the vertical axis and unemployment on the horizontal axis. As unemployment decreases, inflation tends to increase, and vice versa, according to the inverse relationship depicted in the curve.

On the Vertical Axis, the Phillips Curve Depicts the