The Phillips Curve (Macro Review) - Macro Topic 5.2

Mr. Clifford reviews the Phillips Curve, explaining its role in depicting economic states: recessionary gap, inflationary gap, and full employment. The short-run Phillips Curve is downward sloping, while the long-run curve is vertical. The video discusses how shifts in aggregate demand and supply affect the curve, illustrating these changes with graphs. It also covers the long-run adjustments in the economy, such as wage and resource price increases, and their impact on the Phillips Curve.

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