Which of the following terms refers to the short-run relationship between inflation and unemployment?
A)the classical dichotomy
B)money neutrality
C)the Phillips curve
D)the Keynesian cross

Question

Quizplus · Accepted Answer

The Phillips curve refers to the inverse relationship between inflation and unemployment in the short run. As unemployment falls, firms may have to increase wages to attract workers, which can lead to higher prices and inflation. The curve is named after economist A.W. Phillips who first observed the relationship in post-WWII Britain.

Which of the Following Terms Refers to the Short-Run Relationship