The Phillips curve shows:
A) the relationship between unemployment and price increases.
B) the relationship between inflation and price increases.
C) the relationship between inflation and wage-rate increases.
D) the relationship between unemployment and underemployment.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between unemployment and inflation, indicating that as unemployment decreases, inflation tends to increase, and vice versa.

The Phillips Curve Shows