The traditional phillips curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment:

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21-06-2018
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The traditional phillips curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment:

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MrsTriplet MrsTriplet · Answer 1 · 2018-07-01T21:07:10+02:00

The traditional Phillips curve suggests that, if government uses an expansionary fiscal policy to stimulate output and employment the natural rate of unemployment may fall. The Phillips curve is an empirical model that shows the inverse relationship between rates of unemployment and rates of wages in the economy. This model will allow economist to see how much employment and unemployment rates are related to wage raising.