The Philips curve is based on a tradeoff between
A) inflation and unemployment.
B) deflation and unemployment.
C) inflation and budget deficit.
D) unemployment and trade deficit.
E) inflation and imports.

Question

Quizplus · Accepted Answer

The Philips curve is based on the tradeoff between inflation and unemployment. It suggests that as unemployment decreases, inflation increases and vice versa. This relationship is not necessarily perfect, and it can be influenced by other factors such as supply shocks and expectations.

The Philips Curve Is Based on a Tradeoff Between