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Which of the following is the best definition of the concept behind the Phillips Curve?
The Phillips Curve is meant to express the short-run tradeoff between inflation and unemployment.
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Which of the following is the best definition of the concept behind the Phillips Curve?
The Phillips Curve is meant to express the short-run tradeoff between inflation and unemployment.
Compare your answer with the correct one above
The short-run Phillips curve depicts which of the following relationships?
The short-run Phillips curve indicates an inverse relationship between inflation and unemployment. According to the short-run Phillips curve, as unemployment goes up, inflation goes down, and as inflation goes up, unemployment goes down.
The correct answer is therefore "A tradeoff between unemployment and inflation." Recall that a tradeoff refers to an inverse relationship.
The other answer choices are all distortions of the predictions of the short-run Phillips curve.
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The short-run Phillips curve depicts which of the following relationships?
The short-run Phillips curve indicates an inverse relationship between inflation and unemployment. According to the short-run Phillips curve, as unemployment goes up, inflation goes down, and as inflation goes up, unemployment goes down.
The correct answer is therefore "A tradeoff between unemployment and inflation." Recall that a tradeoff refers to an inverse relationship.
The other answer choices are all distortions of the predictions of the short-run Phillips curve.
Compare your answer with the correct one above