Q. In context with the macroeconomics , Philips Curve is a relationship between the rates of ___?
Answer: Unemployment and Inflation
Notes: Phillips curve developed by A. W. Phillips says that the inflation and unemployment have a stable and inverse relationship; which means that higher inflation is associated with lower unemployment and vice versa. However, later it was proved that this curve is applicable only in the short-run, and in long-run, inflationary policies would not decrease unemployment.