According to the Phillips curve, policymakers can reduce both inflation and unemployment by increasing the money supply.

Name: According to the Phillips curve, policymakers can reduce both inflation and unemployment by increasing the money supply.
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Question

​According to the Phillips curve, policymakers can reduce both inflation and unemployment by increasing the money supply.

Quizplus · Accepted Answer

The Phillips curve suggests a trade-off between inflation and unemployment, implying that reducing inflation typically results in higher unemployment, and vice versa, not that increasing the money supply can reduce both simultaneously.

​According to the Phillips Curve, Policymakers Can Reduce Both Inflation

According to the Phillips Curve, Policymakers Can Reduce Both Inflation