Economists generally assume that there is a short-run trade-off between
A)output and employment.
B)inflation and employment.
C)deflation and unemployment.
D)inflation and unemployment.
E)output and growth.

Question

Quizplus · Accepted Answer

The short-run trade-off economists assume is between inflation and unemployment. This is known as the Phillips curve relationship, which suggests that when unemployment is low, inflation tends to be high and vice versa in the short run.

Economists Generally Assume That There Is a Short-Run Trade-Off Between