How are inflation and unemployment related in the short run?
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In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases.
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The Phillips curve shows the relationship between inflation and unemployment. In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off. In the 1960's, economists believed that the short-run Phillips curve was stable.
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