According to the Phillips curve
A) there is a direct relationship between price-level changes and the level of unemployment rate.
B) the unemployment rate is not affected by changes in the price level.
C) price-level changes are not affected by changes in the unemployment rate.
D) there is an inverse relationship between price-level changes and the unemployment rate.

Question

Quizplus · Accepted Answer

The Phillips curve states that there is an inverse relationship between price-level changes and the unemployment rate. This means that as prices increase, unemployment decreases and vice versa. This relationship, however, may not hold true in the short term as there are other factors at play.

According to the Phillips Curve