A Phillips phase of the inflation-unemployment relationship occurs when both inflation and
Junemployment increase.

Question

Quizplus · Accepted Answer

A Phillips phase occurs when there is a negative relationship between inflation and unemployment, meaning that as unemployment decreases, inflation increases and vice versa. The opposite scenario, where both inflation and unemployment increase, is not considered to be a Phillips phase.

A Phillips Phase of the Inflation-Unemployment Relationship Occurs When Both