how does short run phillips curve being used today 2020?

Expert Solution

Answer - In the short run the philips curve shows that there is negative relation between the rate of inflation and rate of unemployment. In the present world scenario , we know that the economy is running into recesion or negative inflation. Hence the unemployment rate is as high as 15 %. As the economy will start recovering , the unemployment rate will start dropping thus signifying the correct relation on philips curve.

Rahul Sunny answered 2 years ago

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