The Short-run Phillips Curve

This video lesson introduces a basic Macroeconomic model showing the short-run tradeoff that exists between inflation and unemployment in nation's economy. By examining the effect that a shift in Aggregate Demand has on the average price level and the level of output and employment, we observe a simple tradeoff: lower unemployment generally comes at the cost of higher inflation, while lower inflation may require higher unemployment.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

[@ozansaglk6485]

If I pass my economy exam that'd mostly be with your videos! Thank you Jason

[@christina735]

Great presentation! Thanks for explaining this in a way beginners can understand :)

[@blok31092]

this is fantastic. I have an exam on this tomorrow and it taught me everything I need to know about the SR Phillips Curve. Thanks!!

[@Horiondigital]

The best explanation of SRPC! Thanks.

[@konulahmadova146]

Thank you so much for such a great explanation!

[@SophatSoeung]

Thank you! Why haven't I discovered the magic of TH-cam education earlier?

[@calebanderson5309]

Great video. I give it a 8/10. Which on the Phillips curve is an 7/10. Just playing. Thanks man.

[@lirychan8011]

Clear and useful. Thank you very much

[@Jodsk8s]

thank you SO MUCH for posting this!

[@MrJgidders]

Very very helpful. Thankyou. You earned this sub.

[@mateolafalce5769]

Thank you so much Treacher!!

[@powerhits44]

Danke Jason!

[@9Coronas]

It's a miracle. It's going to be the reason I graduate.

[@sparkgin]

Thank you for every single tutorial ((:

[@TheQawsed789]

Great video on the Phillips Curve

[@mm22sapphire50]

jason youre a lifesaver

[@glenhael]

Excellent as always thanks keep it up

[@Omeit]

awesome explanation.

[@samuri2011]

ur a blessing~~~~ i did not understand at all until i watched this video~ thanx so much! ^_^

[@99fergs]

Finally, a cogent explanation.

[@mahadiarian9093]

I didn't understand, for the AD, you connected the point a,b,c but for AS u didnt connect the point why?

[@andrewsw6]

Thank you! amazing video

[@Jarjamfar]

Do you have moment to talk about our lord and savoir Ben Bernanke?

[@shubhamgoel5115]

Great video

[@vientoenpopa3]

Does that apply for the interconnection of the chinese labor with the American Economy too? Cheap chinese labor can definitely not create a direct inflation in the world of the dollar, true? In the department of oil, the petrodollar does its part and in the one for the labor, China finish up the job and the dollar remains in the throne of the Kingdom.

[@hank6222]

me too! mine will be next week : )
Thanks God.

[@renjing]

How come in the AD-AS diagram you say there is an equilibrium price level, and then becomes an equilibrium inflation rate all of a sudden?

[@TheRaulfaycal]

thanks a lot.

[@sumanchowdhury9549]

why on earth LRAS,SRAS and AD intersect on one point?pls explain???

[@sriramsenthil]

I dunno how to thank u. Great job.

[@AlomgirkabirPolash]

Sir, it was so much helpful for me. Thanks 😊
There is a little mistake in ur=8 but u draw in p.c 7 .

[@carlosamaral4418]

+Alomgir kabir Polash Yes, you are true

[@tobyvanextel1815]

this was a great video

[@jamaabdijama]

thnks 4 every thing

[@nabaasajudithable]

thank you now I have understood the relationship between unemployment rate and inflation rate.

[@abhishekmore2750]

Thank you, Nabaasa, I now understand what you learned from this wonder video!

[@bargdaffy1535]

So as we are experiencing right now High Inflation leads to Low Unemployment....

[@HarpreetSingh-vt6qo]

i understand that but why if in the question only the PL and gdp is given How do you find the inflation rate.

[@abhishekmore2750]

Carefully

[@sasirut]

Is that at 07:18 a mistake? Why did you write an unemployment rate of 8% on the left, but draw the line at 7% on the right? Am I missing something?

[@helenaxie1517]

when you plotted the disinflation line (the green line) on the AS/AD curve, you said the UR was 8% but when you put it on the Phillips curve, you put it under 7%. Did you mean to instead plot it on the 8% interval? If so, minor mistake... but just making sure.

[@abhishekmore2750]

Sorry for the late response! Yes, it was a mistake

[@crystaloommen3790]

gr8 xplanashun

[@sams.7910]

+1

[@Killuminatismd]

Absolutely fantastic explanation. Thank you sir. I'll wire you some money if I ever become rich from studying economics and finance :)

[@priyankatheartist8643]

have you become rich?

[@ayushmaheshwari2630]

You are not suppose to show cost push inflation in keynisian model

[@OccasionallyEpic]

+Jared Farley Yes, we must all Ctrl+P(rey) to almighty Bernanke, lord of the printer.

[@stickytapelolhaha123]

A.W. Phillips invented this concept in 1949 not in the 18th century! ;)

[@marccasas9866]

+Till Hoelzer True

[@aanchalpandey168]

+Till Hoelzer umm, that is the 18th century exactly! like rn i.e. in 2016, we are in the 21st century.

[@nicolaslarkin7053]

try again

[@abhishekmore2750]

You failed this exam, didn't you?

[@JasonWelker]

Yes, it's a mistake. Good spot!

[@steveklurfeld4412]

ummmm...at 7:26...shouldn't that be an unemployment rate of 8%??? I mean what happened to standards...what is this country coming to?...where's the oversight.....:).....Point C is misplaced, sadly

[@LikeGetR3kt]

I hate econ