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Which of the following

would be best
represented by "Y" on a
Phillips Curve?
A. Interest
B. Unemployment
C. Inflation
D. Price

Which of the following would be best represented by "Y" on a Phillips Curve-example-1
User Shedokan
by
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1 Answer

6 votes
Answer: (C) Inflation

Explanation: Phillips Curve, named after William Phillips, is a graphical representation of the trade-off between Inflation and Unemployment. The Phillips Curve, as depicted in the figure here measures Inflation rate on the Y-axis and Unemployment Rate on the X-axis, both being inversely proportional to each other. Phillips Curve operates both in the long-run and short-run.
User Punintended
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