What are the three phases of the inflation-unemployment cycle?

Question

Quizplus · Accepted Answer

The three phases of the inflation-unemployment cycle are the Phillips phase (characterized by low unemployment and increasing inflation), the stagflation phase (characterized by high inflation and high unemployment), and the recovery phase (characterized by decreasing inflation and decreasing unemployment). Option A is incorrect as it includes a full-employment phase that is not part of the cycle. Option B is incorrect as it does not include the recovery phase. Option D is incorrect as it includes an expansionary phase that is not a distinct phase in the cycle.

What Are the Three Phases of the Inflation-Unemployment Cycle