Answer to Question #246441 in Macroeconomics for Prisca Mahlalela

Question

A Phillips curve shows that in the:

A. long run there is a trade-off between unemployment and inflation.

B. long run there is a trade-off between GDP and prices.

C. short run there is a trade-off between unemployment and inflation.

D. short run there is a trade-off between unemployment and wages.

Answer 1

Correct answer is C. short run there is a trade-off between unemployment and inflation.