The Phillips curve describes the relationship between ........

Economic Affairs Inflation

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The Phillips curve describes the relationship between:

Budget deficit and the trade deficit

savings and investment

Unemployment rate and the inflation rate

Marginal tax rates and tax revenues

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Explanation:

The Phillips curve is a single-equation empirical model, named after William Phillips, describing a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result within an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation.