The downward slope of the Phillips curve implies that:
A) monetary policy is more appropriate than ?scal policy in controlling in?ation.
B) it is not possible for the economy to achieve full employment.
C) policy makers face a trade-off between unemployment and in?ation.
D) it is possible to maintain high levels of employment at low and stable price levels.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the trade-off between unemployment and inflation, suggesting that reducing inflation often comes with higher unemployment rates and vice versa.

The Downward Slope of the Phillips Curve Implies That