Is there tradeoff between inflation and unemployment?
A)There is a short-run tradeoff between inflation and unemployment.
B)There is a long-run tradeoff between inflation and unemployment.
C)There is a tradeoff between inflation and unemployment both in the short-run and long-run.
D)There is no relationship between inflation and unemployment.

Question

Quizplus · Accepted Answer

In the short-run, there is a tradeoff between inflation and unemployment known as the Phillips curve. As unemployment decreases, inflation tends to increase, and vice versa. However, this tradeoff is only present in the short-run and disappears in the long-run.

Is There Tradeoff Between Inflation and Unemployment