The short-run Phillips curve is a curve that shows the relationship, other things being constant, between _{--------------------} and_{--------------------} . A)the unemployment rate; real GDP B)the inflation rate; the nominal interest rate C)potential GDP; the natural unemployment rate D)the inflation rate; the unemployment rate E)the inflation rate; the expected inflation rate

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates the inverse relationship between the inflation rate and the unemployment rate, assuming other factors remain constant.

The Short-Run Phillips Curve Is a Curve That Shows the Relationship