The Phillips Curve

Jackson Hernandez

10 min read

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Study Guide Overview

This study guide covers the Phillips Curve, exploring its relationship to inflation and unemployment. It differentiates between the short-run Phillips curve (SRPC) and the long-run Phillips curve (LRPC), including how shifts in aggregate demand (AD) and short-run aggregate supply (SRAS) affect the SRPC. The guide also explains stagflation, the natural rate of unemployment, and its impact on the LRPC. Finally, it provides practice questions and exam tips for the AP Macroeconomics exam.

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Question 1 of 10

Ready to test your knowledge? 🤔 What relationship does the Short-Run Phillips Curve (SRPC) illustrate?

A positive relationship between inflation and unemployment

A negative relationship between inflation and unemployment

No relationship between inflation and unemployment

A direct relationship between inflation and unemployment