Which of the following describes the distinction between the Phillips curve and the AS curve?
A)The AS curve has the price level on the vertical axis whereas the Phillips curve has the interest rate on the vertical axis.
B)The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of change in the interest rate on the vertical axis.
C)The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
D)The AS curve has the rate of price inflation on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
E)There is no distinction: the two curves are essentially the same thing.

Question

Quizplus · Accepted Answer

The AS curve (Aggregate Supply curve) represents the relationship between the overall price level in the economy and the total output (or aggregate supply), with the price level on the vertical axis. The Phillips curve, on the other hand, shows the relationship between the rate of inflation (which can be reflected in wage changes) and unemployment, with the rate of wage changes (or inflation) on the vertical axis.

Which of the Following Describes the Distinction Between the Phillips