Back to the full dot-point answer
WalesEconomicsQuick questions
Evaluating Economic Models and Policies (A2 Unit 4)
Quick questions on Aggregate supply and the Phillips Curve - WJEC A-Level Economics
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the short-run Phillips Curve?Show answer
The original Phillips relationship suggested governments could "choose" a point on the curve, accepting higher inflation for lower unemployment or vice versa, which underpinned demand management in the post-war decades. The mechanism is that as unemployment falls and the labour market tightens, workers can bargain for higher wages, raising costs and prices. For a time this seemed a stable, exploitable trade-off, and it fitted the upward-sloping SRAS: boosting demand raised output and employment but also prices.
What is q1?Show answer
State what the short-run Phillips Curve shows. [2 marks]
What is q2?Show answer
Explain why the long-run Phillips Curve is vertical. [3 marks]
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.