According to the Phillips curve, other things being equal, inflation depends positively on all of the following except:
A)expected inflation.
B)the unemployment rate.
C)the natural unemployment rate.
D)a supply shock, if one occurs.

Question

Quizplus · Accepted Answer

The Phillips curve suggests that inflation is negatively related to the unemployment rate, meaning higher unemployment typically leads to lower inflation, not higher.

According to the Phillips Curve, Other Things Being Equal, Inflation