Define the short-run Phillips curve
What will be an ideal response?
The short-run Phillips curve shows the relationship between the inflation rate and the unemployment rate when the natural unemployment rate and the expected inflation rate do not change. The short-run Phillips curve is downward sloping, indicating that there is a tradeoff between inflation and unemployment: inflation can be lowered only at the cost of higher unemployment and unemployment can be lowered only at the cost of higher inflation.
You might also like to view...
The demand curve can be derived from indifference curves by varying the price of the commodity in question.
Answer the following statement true (T) or false (F)
The figure illustrates the demand for peanuts. If the price falls from $12 to $9 a bag, total revenue will ________, and if the price rises from $3 to $6 a bag, total revenue will ________
A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease
Refer to the following nonlinear model which relates W to P, Q, and R:W = aPbQcRdThe computer output form the regression analysis is: 
Based on the info above, the value of R2 tells us that
A. 90.23% of the total variation in ln W is explained by the regression equation. B. 0.9023% of the total variation in P, W, and R is explained by the regression equation. C. 0.9023% of the total variation in ln W is explained by the regression equation. D. 0.9023% of the total variation in ln P, ln Q, and ln R is explained by the regression equation.
To keep high inflation from eroding the value of money, monetary authorities in the United States:
A. establish insurance on checkable deposit accounts. B. make paper money legal tender for the payment of debt. C. control the supply of money in the economy. D. create token money that is less than its intrinsic value.