For each Phillips curve,there
A)is no relationship between the short run aggregate supply curve.
B)is many short run aggregate supply curves.
C)is a unique long run aggregate supply curve.
D)is a unique short run aggregate supply curve.

Question

Quizplus · Accepted Answer

The Phillips curve shows the inverse relationship between unemployment and inflation in the short run. The short run aggregate supply (SRAS) curve represents the quantity of output firms are willing to supply at different price levels in the short run. Therefore, there is a unique SRAS curve that corresponds to each Phillips curve. However, the long run aggregate supply (LRAS) curve represents the economy's potential output level in the long run, and it is not directly related to the Phillips curve.

For Each Phillips Curve,there