Practice mode Introduction To Economics

What does the Phillips curve show?

Correct answer B. A decrease in inflation temporarily increases unemployment

Explanation

The short-run Phillips curve shows an inverse trade-off between inflation and unemployment, so policies that bring inflation down tend to push unemployment up for a time.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.