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emmasim [6.3K]
3 years ago
10

The short run Phillips Curve illustrates that there is: Group of answer choices

Social Studies
1 answer:
hammer [34]3 years ago
6 0

Answer:

A) an inverse relationship between the unemployment rate and the rate of inflation.                        

Explanation:

The answer is --

A) an inverse relationship between the unemployment rate and the rate of inflation.

            William Phillips originated the Phillips Curve. It is a single-equation economic model which describes an inverse relation between the rates of increase in salary or wages and unemployment rates.

            The Phillips Curve in the short run shows that there is an inverse relationship between rates of unemployment an d the rates of inflation. In the short-run Phillips curve, the economy is always operating.

Hence the answer is ---

A) an inverse relationship between the unemployment rate and the rate of inflation.  

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