A short-run Phillips curve shows an inverse relationship between interest rates and borrowing A. inflation and unemployment B. income and consumption C. prices and quantity demanded D. inputs and outputs

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Business

Mohamed Kirk

5 October, 11:13

A short-run Phillips curve shows an inverse relationship between interest rates and borrowing A. inflation and unemployment B. income and consumption C. prices and quantity demanded D. inputs and outputs

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Haley Jensen · Answer 1

Inflation and unemployment.

Explanation:

Philips curve represents the trade off between inflation and the unemployment.

It shows that there is an inverse relationship between the inflation and the unemployment. This means that if a nation wants to reduce the unemployment then it have to accept the higher rate of inflation and on the other hand, if a nation wants to lower down inflation then it have to accept higher rate of unemployment.