What does the original Phillips curve depict?

Show Answers

The inverse relationship between inflation and unemploymentThe trade-off between economic output and unemploymentA direct correlation between output levels and unemployment ratesA positive association between inflation and unemployment

Explanation

The original Phillips curve demonstrates an inverse relationship between inflation and unemployment, indicating that as inflation rises, unemployment tends to fall, and vice versa. Other options confuse this with relationships involving output or suggest positive correlations that are not represented by the original Phillips curve.