When it was introduced in 1958, the Phillips curve presented policymakers with a "menu" from which they could choose the appropriate
A) combination of monetary and fiscal policy.
B) combination of inflation and unemployment.
C) level of aggregate money supply.
D) income tax rate.

Question

Quizplus · Accepted Answer

The Phillips curve originally illustrated a trade-off between inflation and unemployment, suggesting that policymakers could choose between higher inflation with lower unemployment, or lower inflation with higher unemployment.

When It Was Introduced in 1958, the Phillips Curve Presented