The Phillips curve reflects
A) the short-run tradeoff between inflation and unemployment
B) short- and long-run tradeoffs between unemployment and inflation
C) the long-run tradeoff between inflation and unemployment
D) the income distribution effects of inflation
E) short-run fluctuations in GDP

Question

Quizplus · Accepted Answer

The Phillips curve shows the short-run tradeoff between inflation and unemployment, indicating that as unemployment decreases, inflation increases in the short run, and vice versa.

The Phillips Curve Reflects