The line that shows the connection between inflation and unemployment in the short run is called the:
A) Phillips Curve.
B) inflation-employment trade-off.
C) price-work curve.
D) aggregate supply.

Question

Quizplus · Accepted Answer

The line that shows the connection between inflation and unemployment in the short run is called the Phillips Curve. It shows the inverse relationship between inflation and unemployment - as one decreases, the other increases. It is named after economist A.W. Phillips who first observed the relationship in the 1950s. Choice B is partially correct, as there is a trade-off between inflation and employment, but the specific term used is the Phillips Curve. Choices C and D are both incorrect as they do not refer to the specific concept of the relationship between inflation and unemployment in the short run.

The Line That Shows the Connection Between Inflation and Unemployment