POOP curve (phillips)

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7 Terms

1
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Whats on the axis of the Phillips Curve

Y- Annual rate of inflation. X- Unemployment rate

2
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Short run Poop curve

As inflation declines, unemployment increases

3
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When AD shifts what happens in the poop curve,…..

Move along the poop curve.

<p>Move along the poop curve. </p>
4
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when AS shifts what happens to poop curve…

poop curve mirrors…

<p>poop curve mirrors…</p>
5
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AS shock (stagflation)

AS shifts left. poop curve shift right causing both unemployment and inflation to rise. (BADDD)

6
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What are the expectiation to Short Run Poop Curve

when workers expect the inflation rate to rise, they negotiate for higher wages in expectation of rising prices. JUST EVEN EXPECTING INFLATION TO RISE IT WILL RISE. (its like ur manefesting it)

7
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Long run poop curve

NO TRADE OFFS, and always return to FE (dont worry about unemployment worry about inflation)