What is the Phillips Curve?

Economics Phillips Curve Questions



40 Short 80 Medium 47 Long Answer Questions Question Index

What is the Phillips Curve?

The Phillips Curve is a graphical representation that shows the inverse relationship between the rate of unemployment and the rate of inflation in an economy. It suggests 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.