The Phillips curve:
A)is downward sloping.
B)is upward sloping.
C)shows there is a tradeoff between unemployment and the inflation rate.
D)shows there is a tradeoff between population and the inflation rate.

Question

Quizplus · Accepted Answer

The Phillips curve shows the relationship between the unemployment rate and the inflation rate. It is downward sloping, meaning that when the unemployment rate is high, the inflation rate is low, and vice versa. This is because when there are more people unemployed, there is less demand for goods and services, which leads to lower prices. Conversely, when there are fewer people unemployed, there is more demand for goods and services, which leads to higher prices.

The Phillips Curve