Answer to Question #246465 in Macroeconomics for Ch 30 - 1

Question

A Phillips curve shows that, in the:

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

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

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

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

Answer 1

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