According to the original Phillips curve analysis
January 3rd, 2018
according to the original Phillips curve analysis:1. policy makers are faced with a choice between higher inflation and higher unemployment2. a rightward shift of the phillips curve shows that a given unemployment rate is associated with a higher inflation rate3. the more inflexible the labour market, the less the trade off between inflation and inemployment4. the use of activist policies such as fiscal policy to decrease unemployment will cause a decrease in the price level5. a positive relationship exists between changes in money wages and unemployment