A.W. Phillips concluded that there is a trade-off between the inflation rate and the unemployment rate in the short-run. The graph to the right can be used to show the relationship between those two...

Extracted text: A.W. Phillips concluded that there is a trade-off between the inflation rate and the unemployment rate in the short-run. The graph to the right can be used to show the relationship between those two variables. 10- Using the 3-point curved line drawing tool, draw the relationship that A. W. Phillips saw between the unemployment and inflation rates in the graph to the right. Label the curve 'PC'. 8- Carefully follow the instructions above, and only draw the required objects. 6- However, the U.S. experience shows that there is no clear relationship between the unemployment rate and the inflation rate. Since the 1950s data indicate that changes in the inflation rate have not altered the unemployment rate. Thus, empirical data provide evidence that the long run Phillips Curve is 2- 0- 10 12 14 16 18 20 -2- -4- -6- Unemplovment Rate Inflation Rate 4.