Скачать или смотреть IB Economics Phillips Curve

In this video, we first explore the Short Run Phillips Curve (SRPC), which illustrates the inverse relationship between these two variables. We explain why a decrease in unemployment often leads to higher wage demands and demand-pull inflation, forcing governments to make a "trade-off" when setting fiscal and monetary policy.

This video demonstrates why there is no trade-off in the long run, as the economy always returns to the Natural Rate of Unemployment (NRU). You will learn how adaptive expectations cause the SRPC to shift, leading to stagflation.

#Economics #PhillipsCurve #Inflation

Timestamps

00:00 - Intro
00:27 - Outward shift in AD
01:02 - Inward shift in AD
01:25 - Inward hit in AS
02:15 - Long run Phillips curve