The short-run Phillips curve shows the relationship between the
A)inflation rate and the nominal interest rate.
B)natural unemployment rate and the expected inflation rate.
C)inflation rate and the unemployment rate.
D)expected inflation rate and the unemployment rate.
E)natural unemployment rate and the real interest rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates the inverse relationship between the inflation rate and the unemployment rate, indicating that as inflation increases, unemployment tends to decrease, and vice versa, in the short run.

The Short-Run Phillips Curve Shows the Relationship Between the