Economics Aggregate Demand And Supply Questions
The Phillips curve is a concept in economics that shows the relationship between inflation and unemployment. It suggests that there is an inverse relationship between the two variables, meaning that when unemployment is low, inflation tends to be high, and vice versa. The curve is named after economist A.W. Phillips, who first observed this relationship in the 1950s. The Phillips curve is often used by policymakers to understand and predict the trade-off between inflation and unemployment in an economy.