Question

Q5. Explain with the help of suitable diagrams and equations the determination of Inflation
Rate and Output, both in the short run and long run.​

Answer 1

Answer:

Q5. Explain with the help of suitable diagrams and equations the determination of Inflation

Rate and Output, both in the short run and long run.

Answer 2

Answer:

The Phillips curve is an economic concept developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.1