Phillips, in 1958 in New Zealand who is an economist published a study showing the relationship between the unemployment rate and the rate of change in the wages which was in England, he also found out that there have had an inverse relationship between the unemployment rate and the rate of change in wage during the years of 1826 through 1957.
A.W. PHILLIPS.
Some economists defined or referred to Phillips curve as a graph that illustrates the relationship between inflation and the unemployment rate and they also suggested that the society could use the curve to select the combination of inflation and unemployment rate. .
ECONOMICS.
FROM THE FIFTH EDITION.
BY WILLIAMS BOYES AND MICHEAL MELVIN.
According to Professor of Economics. J. Bradford Delong, he defined Phillips curve by saying whenever unemployment is low, inflation tends to be high and also whenever unemployment is high, inflation tends to be low, this inverse the relationship between inflation and unemployment .
PROFESSOR OF ECONOMICS J. BRADFORD, Delong, 601 Evans Hall, #3880.
If a certain point on the Phillips curve was choosing then the government would use the fiscal policy or monetary policy or both of them depending to reach and maintain these targets, the Phillips curve relationship suggests on how the society could achieve or reach the lower unemployment rates by accepting the higher inflation rates, the changing of the relationship between unemployment and inflation rates which has been the result of the shifts in the Phillips curve.
In the Phillips curve it shows that there is an inverse relationship that exists between the unemployment and inflation rates in the short run, this relationship does not hold the long run, and if there is an increase in aggregate demand it will result in a movement along the Phillips curve.
ECONOMICS .
FROM THE FIFTH EDITION.
BY WILLIAMS BOYES AND MICHEAL MELVIN.