On the modern Phillips curve,the beginning of a recession is shown by ________.
A)an upward movement along the Phillips curve to a higher inflation rate
B)an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
C)a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
D)a downward movement along the Phillips curve to higher unemployment rates
E)none of the above

Question

Quizplus · Accepted Answer

The beginning of a recession is typically characterized by higher unemployment rates, which on the Phillips curve is shown by a downward movement along the curve. This movement reflects the inverse relationship between unemployment and inflation depicted by the Phillips curve.

On the Modern Phillips Curve,the Beginning of a Recession Is