For a given level of anticipated inflation and natural unemployment rate, the short-run Phillips curve shows the relationship between
A) potential GDP and real GDP.
B) real GDP growth and the unemployment rate.
C) inflation and money growth.
D) inflation and the unemployment rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates the inverse relationship between inflation and the unemployment rate, holding the anticipated level of inflation and the natural rate of unemployment constant.

For a Given Level of Anticipated Inflation and Natural Unemployment