According to the Phillips curve,unemployment and inflation are negatively related in
A)the short run and in the long run.
B)the short run,but not in the long run.
C)the long run,but not in the short run.
D)neither the long run nor the short run.

Question

Quizplus · Accepted Answer

The Phillips curve suggests that there is a negative relationship between unemployment and inflation in the short run. However, in the long run, this relationship may break down due to a variety of factors, such as changes in expectations or structural changes in the economy. Therefore, while there may be a negative correlation between these variables in the short run, it is not necessarily true in the long run.

According to the Phillips Curve,unemployment and Inflation Are Negatively Related