Inflation and the Phillips curve 0.0 / 5 ? EconomicsInflation and deflationA2/A-levelAQA Created by: RitikaCreated on: 24-02-15 16:33 Short- run Phillips curve a downward- sloping Phillips curve showing a trade- off between reducing inflation and unemployment 1 of 6 Long- run Phillips curve a vertical Phillips curve along which trade- offs between reducing inflation and reducing unemployment are not possible 2 of 6 Natural rate of unemployment the rate of unemployment when the aggregate labour market is in equilibrium. 3 of 6 Phillips curve based on evidence from the economy, showing the relationship between the rate of inflation and the level of unemployment. 4 of 6 Cost push inflation caused by rising business costs of production 5 of 6 demand pull inflation caused by excess demand for output 6 of 6
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