SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

Why would Keynesian Economists agree with the Phillips Curve?

Author: eric_galvao

Why would Keynesian Economists agree with the Phillips Curve?



Answer:

-Due to how they perceive the LRAS Curve. -Below Point A, where Output is Low and Unemployment is High, workers will Take on Jobs even if Wages are Low. Output will Rise and Inflation won't Increase at all -But between A and B, as you Increase Output and Lower Unemployment, Prices start to rise and rise. This is seen exactly from the Philipps Curve?


0 / 5  (0 ratings)

1 answer(s) in total