IB Economics HL 3.3.9 (HL)—Phillips curve and macroeconomic trade-offs Question Bank

• The short-run Phillips curve shows a trade-off between inflation and unemployment

• The long-run Phillips curve shows the long-run relationship between inflation and unemployment

• Diagram [HL]: AD/AS curves for unemployment-inflation trade-off

• Diagram [HL]: short-run and long-run Phillips curve