A tradeoff between inflation and unemployment is shown directly by the __________ curve.

Question

Quizplus · Accepted Answer

The Phillips curve shows the tradeoff between inflation and unemployment, indicating that there is an inverse relationship between the two. As unemployment decreases, inflation increases, and vice versa. The Fisher curve shows the relationship between nominal and real interest rates. The Friedman Curve shows the relationship between the amount of money in circulation and inflation, and the aggregate demand curve shows the relationship between the price level and the quantity of goods and services demanded in an economy.

A Tradeoff Between Inflation and Unemployment Is Shown Directly by the __________