Philips curve is an empirical model that is named after William Philips, which depicts the inverse relationship between the unemployment rates and the inflation rates that occur correspondingly in an economy. To be precise, high rates of inflation will result in a decreased unemployment condition in a country.
It fundamentally states that the change in the condition of unemployment in a country will directly inflict upon the inflation of price. The inflation rate will be drawn along the y-axis, and the unemployment will be marked along the x-axis. As inflation increases, unemployment decreases and vice versa. Similarly, a decrease in the rate of unemployment will also increase the rate of inflation and vice versa.
Where can you find the best solution for this curve?
There is never going to be stability between the unemployment rate and inflation rate and that is what the Philips curve homework answers are going to be about. It is not as difficult as certain other complex topics in accounting and finance, but it still takes a lot to be able to sit and finish the problem regarding this curve in one go.
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