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    What Is The Price Adjustment Curve?

    2010/9/26 17:48:00 81

    Price Monetary Wage

    Price adjustment curve


      

    Price

    The adjustment curve, also known as the Phelps curve, shows that there is an alternate relationship between wage growth rate and unemployment rate.

    Price adjustment

    The line is Phillips Te, a New Zealand economist, and is known by economists as the Phillips curve.

    Because of the currency of a country

    wages

    The growth rate basically has the same direction of change as the inflation rate, so the Phillips curve has been pformed into the relationship between inflation rate and unemployment.

    It is also used to study inflation and explain the price adjustment process, so it is also known as price adjustment curve.

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