The Phillips curve that shows a tradeoff between the rate of unemployment and the rate of inflation is:
A) downward sloping.
B) upward sloping.
C) downward sloping at low rates of unemployment and upward sloping at high rates of unemployment.
D) upward sloping at low rates of unemployment and downward sloping at high rates of unemployment.

Question

Quizplus · Accepted Answer

The Phillips curve traditionally illustrates a trade-off between inflation and unemployment, suggesting that lower unemployment comes with higher inflation, hence it is downward sloping.

The Phillips Curve That Shows a Tradeoff Between the Rate