If the unemployment rate and the inflation rate both increase simultaneously,what curve will shift right?
A)the Phillips curve
B)the SRAS
C)the LRAS
D)the AD

Question

Quizplus · Accepted Answer

The Phillips curve represents the inverse relationship between unemployment and inflation. If both increase simultaneously, it suggests a shift in the Phillips curve to the right, indicating a breakdown in the traditional trade-off.

If the Unemployment Rate and the Inflation Rate Both Increase