Phillips curve

  

Definition

Graphic description of the inverse relationship between wages and unemployment levels (higher the rate of change of wages lower the unemployment, and vice versa). Although its main implication is that a government has to strike a balance between the two levels, the relationship between the levels (in general) is not stable enough to reach an exact judgment. Also called tradeoff curve, it was invented in 1958 by the UK engineer and economist Albert William Housego Phillips (1914-75).

Use Phillips curve in a sentence

  • When trying to figure out how much to offer to prospective employees the phillips curve can be a good resource.

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  • I checked out the Phillips Curve to see what was happening with it and was really glad to see that the two variables were doing great.

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  • The Phillips curve was displayed during 2015 because despite the global prosperity being at an all time high there are only so many resources to analyze.

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