Macro 2.8 The Phillips Curve

Question 1

Phillips curve

Answer 1

Economic models that demonstrates the trade-off between inflation and unemployment

Question 2

Stagflation

Answer 2

simultaneously rising rates of inflation and unemployment

Question 3

Natural rate of unemployment

Answer 3

proportion of workers who are voluntarily unemployed when the labour market is in equilibrium

Question 4

Non-accelerating inflation rate of unemployment (NAIRU)

Answer 4

rate of unemployment consistent with a constant rate of inflation