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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383
BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383

Solutions

Chapter
Section
Chapter 16, Problem 1QP
Textbook Problem

What does it mean to say that the Phillips curve presents policy makers with a menu of choices?

Expert Solution
To determine

The Phillips curve as a menu of choices.

Explanation of Solution

An article presented by A.W. Phillips in 1958 got a wider coverage because it appears like a menu choice between inflation and unemployment to the policy makers. This menu includes the type of employment whether there is full employment or less than full employment and its corresponding cost in terms of inflation. In other words, Phillips curve shows the relation between inflation and unemployment. By using this, policy makers can analyze the existing economic situations.

Economics Concept Introduction

Phillips curve: It is the curve that shows the relationship and trade-off between the inflation rate and unemployment rate in the economy during the short-run period.

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Chapter 16 Solutions

Economics (MindTap Course List)
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