In the short run, the Phillips Curve indicates a(n):
A)inverse relationship between inflation and unemployment.
B)direct relationship between inflation and unemployment.
C)inverse relationship between GDP and unemployment.
D)direct relationship between GDP and unemployment.

Question

In the short run, the Phillips Curve indicates a(n):
A)​inverse relationship between inflation and unemployment.
B)​direct relationship between inflation and unemployment.
C)​inverse relationship between GDP and unemployment.
D)​direct relationship between GDP and unemployment.

Quizplus · Accepted Answer

The Phillips Curve shows an inverse relationship between inflation and unemployment in the short run. As unemployment decreases, inflation tends to increase, and vice versa.

In the Short Run, the Phillips Curve Indicates A(n)