What are three phases of inflation-unemployment cycles?
A) An expansionary phase, a full-employment phase, and a contractionary phase
B) A Phillips phase, a stagflation phase, and a growth phase
C) A Phillips phase, a stagflation phase, and a recovery phase
D) An expansionary phase, a stagflation phase, and a recovery phase

Question

Quizplus · Accepted Answer

The three phases of inflation-unemployment cycles are commonly known as the Phillips phase, stagflation phase, and recovery phase. The Phillips phase is characterized by low unemployment and high inflation, the stagflation phase is characterized by high inflation and high unemployment, and the recovery phase is characterized by decreasing inflation and decreasing unemployment. Option A and D are incorrect because they do not include the stagflation phase, and option B is incorrect because it includes a "growth phase" which is not a commonly recognized phase in the inflation-unemployment cycle.

What Are Three Phases of Inflation-Unemployment Cycles