True or False: The modern view of the Phillips curve indicates that to keep the unemployment rate low, policymakers should aggressively fight inflation to rapidly lower the inflation rate.

Respuesta :

Answer:

False

Explanation:

False, the given statement is false because the Philips curve shows the inverse relationship between the inflation rate and unemployment. If the curve represents the inflation on the verticle axis and unemployment on the horizontal axis, then we can see that if the inflation rises, then unemployment falls. However, if inflation falls, then unemployment rises. Therefore, if the government wants to keep the unemployment low then it should fight with inflation.