According to the Philips curve diagram,if a central bank takes action to reduce the inflation rate,unemployment is
A)higher in the short-run and the long-run.
B)higher in the short-run only.
C)lower in the short-run and the long-run.
D)lower in the short-run only.

Question

Quizplus · Accepted Answer

According to the Phillips curve, there is a short-run trade-off between inflation and unemployment. Reducing inflation typically leads to higher unemployment in the short-run, but not necessarily in the long-run as the economy adjusts.

According to the Philips Curve Diagram,if a Central Bank Takes