Asked by
Jaylah Riggins
on Nov 16, 2024
Verified
According to the Phillips curve, policymakers can reduce both inflation and unemployment by increasing the money supply.
Phillips Curve
An economic theory that suggests an inverse relationship between rates of unemployment and corresponding rates of inflation.
Money Supply
Refers to the total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.
- Learn about the concept of the Phillips curve within short-term and long-term frameworks.
- Learn about how fiscal and monetary decisions shape inflation and unemployment outcomes.
Verified Answer
AS
Learning Objectives
- Learn about the concept of the Phillips curve within short-term and long-term frameworks.
- Learn about how fiscal and monetary decisions shape inflation and unemployment outcomes.