The Phillips curve is a negative empirical relationship between
A)bond prices and interest rates.
B)unemployment and output.
C)inflation and the real interest rate.
D)unemployment and inflation.

Question

Quizplus · Accepted Answer

The Phillips curve shows a negative relationship between unemployment and inflation. As the level of unemployment decreases, inflation tends to increase, and vice versa. This relationship is based on empirical data and has been observed in various economies over time.

The Phillips Curve Is a Negative Empirical Relationship Between