Assume that a tradeoff exists in the short run between inflation and unemployment.This relationship means that:
A)a low rate of unemployment causes a low rate of inflation.
B)the unemployment rate always equals the inflation rate.
C)less unemployment can be achieved with more inflation.
D)less unemployment can be achieved with less inflation.

Question

Quizplus · Accepted Answer

In the short run, the Phillips Curve illustrates a tradeoff between inflation and unemployment, suggesting that lower unemployment can be achieved at the cost of higher inflation.

Assume That a Tradeoff Exists in the Short Run Between