The short-run Phillips curve is ________ curve along which an increase in the unemployment rate is associated with ________ in the inflation rate.
A) a vertical; no change
B) a downward sloping; a decrease
C) an upward sloping; an increase
D) a horizontal; no change
E) a downward sloping; no change

Question

Quizplus · Accepted Answer

The short-run Phillips curve is downward sloping, indicating an inverse relationship between unemployment and inflation: as unemployment increases, inflation decreases.

The Short-Run Phillips Curve Is ________ Curve Along Which an Increase