Phillips curves describe the relationship between
A) aggregate expenditures and aggregate demand.
B) aggregate demand and the price level.
C) the quantity of money and interest rates.
D) unemployment and inflation.

Question

Quizplus · Accepted Answer

Phillips curves describe the relationship between unemployment and inflation. As unemployment decreases, there is typically an increase in inflation, and vice versa. This relationship is known as the Phillips curve and is an important concept in macroeconomics.

Phillips Curves Describe the Relationship Between