By the end of this section, you will be able to:

Explain the Phillips curve, noting its impact on the theories of Keynesian economics
Graph a Phillips curve
Identify factors that cause the instability of the Phillips curve
Analyze the Keynesian policy for reducing unemployment and inflation

By the end of this section, you will be able to:

Discuss why and how economists measure inflation expectations
Analyze the impacts of fiscal and monetary policy on aggregate supply and aggregate demand
Explain the neoclassical Phillips curve, noting its tradeoff between inflation and unemployment
Identify clear distinctions between neoclassical economics and Keynesian economics

This is a Principles of Macroeconomics Course developed through the Ohio Department of Higher Education OER Innovation Grant. This work was completed and the course was posted in January 2019. The course is part of the Ohio Transfer Assurance Guides (TAGs) as OSS 005. For more information about credit transfer between Ohio colleges and universities, please visit: www.ohiohighered.org/transfer.Team LeadAmyaz Moledina                                  College of WoosterContent ContributorsRosemarie Emanuele                          Ursuline CollegeKenneth Fah                                        Ohio Dominican UniversityDarcy Hartman                                    Ohio State University – NewarkLibrarianNathan Wolfe                                       Kenyon CollegeReview TeamSeth Kim                                              Central Ohio Technical CollegeJoe Nowakowski                                  Muskingum University 

Presents a theoretical and statistical explanation of the negative relationship between inflation and unemployment known as the “Phillips Curve.”