Which term refers to the short-run relationship between inflation and unemployment?
A) equity-efficiency tradeoff
B) money neutrality
C) the Phillips curve
D) the Keynesian cross

Question

Quizplus · Accepted Answer

The term that refers to the short-run relationship between inflation and unemployment is the Phillips curve. It shows that there is an inverse relationship between the two in the short run, meaning that when unemployment is low, inflation tends to be high, and vice versa. This relationship is often used as a tradeoff in macroeconomic policy decisions.

Which Term Refers to the Short-Run Relationship Between Inflation and Unemployment