According to the Phillips curve, if the:
A) inflation rate is falling, the economy is booming.
B) inflation rate is rising, the economy is in recession.
C) inflation rate is rising, the economy is booming.
D) unemployment rate is falling, the economy is booming.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

The Phillips curve suggests an inverse relationship between inflation and unemployment, implying that when inflation is rising, unemployment is typically falling, indicating a booming economy.

According to the Phillips Curve, If The