Phillips curve

(noun)

In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of inflation. While it has been observed that there is a stable short run tradeoff between unemployment and inflation, this has not been observed in the long run

Related Terms

Examples of Phillips curve in the following topics:

  • Employment Levels

    • The Phillips curve tells us that there is no single unemployment number that one can single out as the full employment rate.
    • Ideas associated with the Phillips curve questioned the possibility and value of full employment in a society: this theory suggests that full employment—especially as defined normatively—will be associated with positive inflation .
    • Short-run Phillips curve before and after Expansionary Policy, with long-run Phillips curve (NAIRU).

  • Control of the Money Supply

    • The main functions of the central bank are to maintain low inflation and a low level of unemployment, although these goals are sometimes in conflict (according to Phillips curve).

  • Impacts of Supply and Demand on Businesses

    • The supply curve goes in the opposite direction from the demand curve: As prices rise, the quantity of apples that farmers are willing to sell also goes up.
    • We do this by plotting both the supply curve and the demand curve on one graph.
    • The point at which the two curves intersect is the equilibrium price.
    • The supply and demand curves intersect at the price of $0.60 and quantity of 2,000 pounds.
    • The demand curve would change, resulting in an increase in equilibrium price.

  • Introduction to Building Better Buildings

    • Further north, in Minnesota, stands the Phillips Eco-Enterprise Center (PEEC), a $5.3 million commercial and industrial facility.

  • Introduction to Macro Advantages of Micro-power

    • It's both. ' James Mulva, CEO of ConocoPhillips, is also worried.

  • Innovation

    • This process has been proposed that the life cycle of innovations can be described using the "S-curve' or diffusion curve.
    • The S-curve maps growth of revenue or productivity against time.
    • Successive S-curves will come along to replace older ones and continue to drive growth upwards .
    • In fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns.
    • In the figure above the first curve shows a current technology.

  • Vehicle use cost-saving suggestions

    • Sentinel Transportation (a joint venture between DuPont and ConocoPhillips) have reduced the number of trucks leaving one site 55% by increasing payloads by 50%.

  • Impacts of Supply and Demand on Pricing

    • Equilibrium is defined as the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves.
    • That is, the quantity demanded typically rises causing a downward sloping demand curve.
    • A demand curve shows the quantity demanded at various price levels.
    • Demand-oriented pricing focuses on the nature of the demand curve for the product or service being priced.
    • The nature of the demand curve is influenced largely by the structure of the industry in which a firm competes.

  • Break-Even Analysis

    • Shown graphically, it is seen at the point where the total revenue and total cost curves meet.
    • To do this, draw the total cost curve (TC in the diagram), showing total cost associated with each possible level of output; the fixed cost curve (FC), showing costs that do not vary with output level; and finally, the various total revenue lines (R1, R2, and R3), showing the total amount of revenue received at each output level given the chosen price point.

  • It's not just good business, it's the law

    • Stay ahead of the curve.