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

Question

Business

Veronica Freeman

17 November, 00:20

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

+1

Answers (1)

Know the Answer?

Dominik Murphy · 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.