The simple Phillips curve relationship requires a stable:
A) money supply.
B) unemployment rate.
C) inflation rate.
D) natural rate of unemployment.

Question

Quizplus · Accepted Answer

The simple Phillips curve relationship posits an inverse relationship between the rate of inflation and the unemployment rate, assuming a stable natural rate of unemployment. This means that changes in unemployment can lead to predictable changes in inflation, provided the natural rate of unemployment does not change.

The Simple Phillips Curve Relationship Requires a Stable