Phillips Curve

Question 1

What is the Monetarists view of the Phillips Curve

Answer 1

Demand side policies would reduce unemployment but be ineffective in the long run

Question 2

What is the Keynesian view of the Phillips Curve

Answer 2

Demand side policies could play a role in reducing cyclical unemployment. However, they would still have to be careful not to cause inflation

Question 3

How to shift the Phillips curve

Answer 3

Supply side policies to reduce structural unemployment. If the government introduced successful supply side policies, we could see a fall in structural and frictional unemployment