The original Phillips curve illustrates ?
Correct answer: A. the trade-off between inflation and unemployment
- A. the trade-off between inflation and unemployment
- B. The trade-off between output and unemployment
- C. The positive relationship between output and unemployment
- D. The positive relationship between inflation and unemployment
Explanation
The original Phillips curve showed an inverse short-run relationship between wage or price inflation and unemployment. It therefore represented a trade-off between inflation and unemployment, not a positive relationship.
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