A Phillips curve measures the relationship between
A) the unemployment rate and inflation.
B) the level of money wage rates and GDP.
C) unemployment and GDP.
D) inflation and GDP.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between the rate of inflation and the unemployment rate. Essentially, it suggests that lower unemployment in an economy is associated with higher rates of inflation, and vice versa.

A Phillips Curve Measures the Relationship Between