Asked by ashlee clowers on May 11, 2024
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According to the Phillips curve diagram, if a central bank disinflates what ultimately happens to the unemployment rate?
Phillips Curve
An economic concept that illustrates an inverse relationship between the rate of inflation and the unemployment rate in the short run.
Disinflates
Disinflation refers to a reduction in the rate of inflation, leading to a slower increase in the price levels of goods and services.
Unemployment Rate
The percentage of the working-age population that is unemployed and in the process of looking for a job.
- Describe the relationship between disinflation, unemployment rate, and output as explained by the Phillips curve.
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Learning Objectives
- Describe the relationship between disinflation, unemployment rate, and output as explained by the Phillips curve.
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