Which of the following statements is correct?
A)In the short run,unemployment and inflation are positively related.In the long run they are largely unrelated problems.
B)Inflation and unemployment are positively related in the short run and in the long run.
C)In the short run,unemployment and inflation are negatively related.In the long run they are largely unrelated problems.
D)Inflation and unemployment are negatively related in the short run and in the long run.

Question

Quizplus · Accepted Answer

In the short run, there is often an inverse relationship between inflation and unemployment, known as the Phillips Curve. In the long run, this relationship does not hold, and they are considered largely unrelated.

Which of the Following Statements Is Correct