The short-run Phillips curve shows a
A) positive relationship between the quantity of money and interest rates.
B) positive relationship between the price level and real GDP.
C) negative relationship between interest rates and the price level.
D) negative relationship between the unemployment rate and the inflation rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates a negative relationship between the unemployment rate and the inflation rate, suggesting that as unemployment decreases, inflation increases, and vice versa.

The Short-Run Phillips Curve Shows a