The short-run Phillips Curve (SRPC)
The short-run Phillips Curve: inverse relationship between inflation and unemployment
Why the trade-off exists
The long-run Phillips Curve (LRPC)
The LRPC is vertical at the natural rate of unemployment
Movement along vs. shift of the SRPC
Movement along the SRPC
Shift of the SRPC
Higher expected inflation shifts the entire SRPC upward
Connecting AD-AS to the Phillips Curve
Stagflation on the Phillips Curve
The expectations-augmented Phillips Curve
Attempting to keep unemployment at 3% causes accelerating inflation as expectations adjust
Long-run adjustment
Shifts of the LRPC
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