The Phillips curve describes the relationship between
A) employment and potential output.
B) the unemployment rate and real GDP.
C) the inflation rate and the unemployment rate.
D) the interest rate and the exchange rate.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between the rate of inflation and the unemployment rate, suggesting that lower unemployment comes with higher inflation and vice versa.

The Phillips Curve Describes the Relationship Between