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.c...

[@ozansaglk6485]

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

[@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!!

[@calebanderson5309]

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

[@Horiondigital]

The best explanation of SRPC! Thanks.

[@christina735]

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

[@samuri2011]

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

[@SophatSoeung]

Thank you! Why haven't I discovered the magic of RUclips education earlier?

[@9Coronas]

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

[@mateolafalce5769]

Thank you so much Treacher!!

[@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

[@mahadiarian9093]

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

[@99fergs]

Finally, a cogent explanation.

[@powerhits44]

Danke Jason!

[@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!

[@mm22sapphire50]

jason youre a lifesaver

[@MrJgidders]

Very very helpful. Thankyou. You earned this sub.

[@lirychan8011]

Clear and useful. Thank you very much

[@TheQawsed789]

Great video on the Phillips Curve

[@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?

[@Jarjamfar]

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

[@glenhael]

Excellent as always thanks keep it up

[@sumanchowdhury9549]

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

[@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.

[@konulahmadova146]

Thank you so much for such a great explanation!

[@Jodsk8s]

thank you SO MUCH for posting this!

[@tobyvanextel1815]

this was a great video

[@sparkgin]

Thank you for every single tutorial ((:

[@Omeit]

awesome explanation.

[@hank6222]

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

[@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?

[@sriramsenthil]

I dunno how to thank u. Great job.

[@andrewsw6]

Thank you! amazing video

[@shubhamgoel5115]

Great video

[@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

[@jamaabdijama]

thnks 4 every thing

[@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

[@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?

[@TheRaulfaycal]

thanks a lot.

[@crystaloommen3790]

gr8 xplanashun

[@bargdaffy1535]

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

[@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?

[@ayushmaheshwari2630]

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

[@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

[@JasonWelker]

Yes, it's a mistake. Good spot!

[@sams.7910]

+1

[@OccasionallyEpic]

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

[@LikeGetR3kt]

I hate econ