The Phillips curve depicts a relationship between unemployment and inflation that is:
A) temporary.
B) permanent.
C) permanent only in the long term.
D) long term.

Question

Quizplus · Accepted Answer

The Phillips curve suggests a temporary inverse relationship between unemployment and inflation, primarily observed in the short term. In the long term, this relationship may not hold due to factors like expectations and supply shocks.

The Phillips Curve Depicts a Relationship Between Unemployment and Inflation