One way of expressing the concept of the short-run Phillips curve is to say that:
A)the cost of reducing unemployment is higher inflation.
B)nothing but good comes from reducing unemployment.
C)the cost of reducing inflation is lower unemployment.
D)aggregate supply and aggregate demand will always be equal at the potential output level.
E)the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment.

Question

Quizplus · Accepted Answer

The short-run Phillips curve illustrates a trade-off between inflation and unemployment, suggesting that reducing unemployment often comes at the cost of higher inflation.

One Way of Expressing the Concept of the Short-Run Phillips