Author Question: What is the short-run Phillips curve and what observations does it ... (Read 47 times)

Kthamas · **on:** Jun 30, 2018

What is the short-run Phillips curve and what observations does it make?

Question 2

Any movement to reduce the globalization of the world's economies will make workers in the poorest countries worse off than they would otherwise be.
a. True
b. False
Indicate whether the statement is true or false

KKcool · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The Phillips curve was observed as an inverse relationship between the rate of unemployment and the rate of inflation. As unemployment decreased, the rate of inflation increased, and vice versa. At higher levels of unemployment, it is thought that you could buy more employment with a moderate amount of inflation. At relatively low rates of unemployment, however, further efforts to reduce the unemployment rates would come at the expense of higher and higher rates of inflation.

Answer to Question 2

True