If the short-run Phillips curve were stable, which of the following would be unusual?
A)an increase in inflation and an increase in output
B)a decrease in inflation and an increase in unemployment
C)an increase in both inflation and unemployment
D)an increase in output and a decrease in unemployment

Question

Quizplus · Accepted Answer

The short-run Phillips curve suggests an inverse relationship between inflation and unemployment. An increase in both inflation and unemployment would be unusual if the curve were stable.

If the Short-Run Phillips Curve Were Stable, Which of the Following