The short-run Phillips curve shows the relationship between the
A) inflation rate and the unemployment rate.
B) actual inflation rate and the expected inflation rate.
C) natural rate of unemployment and the expected inflation rate.
D) natural rate of unemployment and the actual unemployment rate.
E) natural rate of unemployment and the actual inflation rate.

Question

Quizplus · Accepted Answer

The short-run Phillips curve shows the relationship between the inflation rate and the unemployment rate. As the unemployment rate falls below the natural rate, inflation tends to increase, and as the unemployment rate rises above the natural rate, inflation tends to decrease.

The Short-Run Phillips Curve Shows the Relationship Between the