Most economists think that, in the short run, there is
A)a trade-off between inflation and unemployment, but not in the long run.
B)no trade-off between inflation and unemployment, nor is there one in the long run.
C)a trade-off between inflation and unemployment, and in the long run also.
D)no trade-off between inflation and unemployment, but there is one in the long run also.

Question

Quizplus · Accepted Answer

The concept of Phillips curve suggests that in the short run, there may be a trade-off between inflation and unemployment, meaning that decreasing unemployment may come at the cost of increased inflation. However, in the long run, this trade-off disappears as the economy adjusts to the new equilibrium. This view is widely accepted by most economists.

Most Economists Think That, in the Short Run, There Is