The Phillips Curve
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What the Phillips Curve shows

What the Phillips Curve shows

Phillips Curve graph with inflation on the vertical axis, unemployment on the horizontal axis, a downward-sloping short-run Phillips Curve, a vertical long-run Phillips Curve at the NAIRU, movement from A to B along the curve, and an upward shift to C as expectations adjust The Phillips Curve studies a possible short-run trade-off between inflation and unemployment. A. W. Phillips first found an inverse relationship between unemployment and wage inflation in UK data.

The Phillips Curve Lesson

  1. A Level
  2. /Economics
  3. /The Phillips Curve