Asked by Devyn Smallwood on May 11, 2024
Verified
A given short-run Phillips curve shows that an increase in the inflation rate will be accompanied by a lower unemployment rate in the short run.
Short-Run Phillips
A concept that shows an inverse relationship between the rate of unemployment and the rate of inflation in an economy over a short period of time.
Inflation Rate
The percentage increase in the price level of goods and services in an economy over a period of time.
Unemployment Rate
The percentage of the labor force that is unemployed.
- Master the relationship between inflation and unemployment through concise and extended spans.
Verified Answer
KT
Khaliq TankardMay 14, 2024
Final Answer :
True
Explanation :
The short-run Phillips curve illustrates an inverse relationship between inflation and unemployment, suggesting that as inflation increases, unemployment tends to decrease, and vice versa, due to short-term trade-offs.
Learning Objectives
- Master the relationship between inflation and unemployment through concise and extended spans.