Phillips Curve

Phillips Curve definition - business

Phillips Curve

The relationship between inflation (as measured by wage rates) and the rate of unemployment. According to the relationship illustrated by the concave curve, there is a trade-off between fighting inflation and reducing unemployment.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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