In the Phillips curve is a:

Name: In the Phillips curve is a:
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Question

In the Phillips curve  is a:

Quizplus · Accepted Answer

The Phillips curve shows the inverse relationship between inflation and unemployment. A temporary cost shock, such as an increase in oil prices, would cause an increase in production costs for firms, leading to a decrease in aggregate supply and causing unemployment to rise and inflation to increase. This is represented by a leftward shift in the short-run Phillips curve.

In the Phillips Curve Is A