What is the Phillips Curve? What concept does it illustrate?

Question

Quizplus · Accepted Answer

The Answer is The Phillips Curve shows the relationship between the unemployment rate and the rate of inflation.The relationship is an inverse one, so there is a short-run tradeoff between the unemployment rate and the rate of inflation.For example, if the unemployment rate increases by 1% then the inflation rate might decline by.5%.The concept was developed by A.W.Phillips in Great Britain based on empirical observation of the relationship between unemployment and inflation in that nation.Modern economists reject the idea of a stable, predictable Phillips Curve, although many economists do agree that there is a short-run tradeoff between unemployment and inflation.

What Is the Phillips Curve? What Concept Does It Illustrate