Modules 34 - 36

Represents the negative short-run relationship between the unemployment rate and the inflation rate.

• zero bound

• short-run Phillips curve (SRPC)

• long-run Phillips curve (LRPC)

• nonaccelerating inflation rate of unemployment (NAIRU)

Shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience.

• zero bound

• long-run Phillips curve (LRPC)

• short-run Phillips curve (SRPC)

• nonaccelerating inflation rate of unemployment (NAIRU)

The unemployment rate at which inflation does not change over time.

• short-run Phillips curve (SRPC)

• zero bound

• nonaccelerating inflation rate of unemployment (NAIRU)

• long-run Phillips curve (LRPC)

The lower bound of zero on the nominal interest rate: it cannot go below zero.

• short-run Phillips curve (SRPC)

• zero bound

• the unemployment rate at which inflation does not change over time.

• long-run Phillips curve (LRPC)

Asserts that GDP will grow steadily if the money supply grows steadily.

• Quantity Theory of Money

• Monetarism

• zero bound

• demand pull inflation

Emphasizes the positive relationship between the price level and the money supply; relies on the velocity equation (M V = P Y).

• quantity demanded

• quantity Theory of Money

• velocity of money

• monetarism

The ratio of nominal GDP to the money supply; a measure of the number of times the average dollar bill is spent per year.

• inflation velocity

• velocity of money

• velocity of inflation

• demand inflation