Answer to Question #313026 in Macroeconomics for Valz

Question

). In today’s economy, it’s harder for workers to get promoted. In 2006, it took an average

of 2 ½ years to get a promotion; today it takes 4 ½ years. As a result, fewer workers are willing

to boost their productivity in an effort to impress the boss and get the promotion. In 2006, 25

percent of employees said they were willing to give “an extra oomph” at work (boost their

productivity); today about 15 percent are willing to do so. Explain the connection to the Phillips

curve.

Answer 1

The Phillips curve being  an economic concept which was developed by A. W. Phillips stating that inflation and unemployment have a stable and inverse relationship. The theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.