Price Stability, Employment, and Growth

TOPIC II: Inflation, Continued: The Accerlationist Model

OBJECTIVES: 
  1. define the Phillips curve.
  2. explain the assumptions and positions of the accerlationist model
  3. explain the effects of an accelerating inflation.
  4. using the Phillips model, explain accelerating inflation and the affects of deceleration policies.

KNOW THE FOLLOWING TERMS

Phillips Curve 

reflation 

accerlationist model

KEY CONCEPTUAL QUESTIONS

  1. How are inflation and unemployment related?
  2. What are the effects of an accelerating inflation?
  3. What has been the U.S. experience since 1980?