{"id":2260,"date":"2015-06-19T21:00:32","date_gmt":"2015-06-19T21:00:32","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterymacro1xngcxmaster\/?post_type=chapter&#038;p=2260"},"modified":"2024-04-26T17:29:23","modified_gmt":"2024-04-26T17:29:23","slug":"outcome-neoclassical-policy-prescriptions","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/outcome-neoclassical-policy-prescriptions\/","title":{"raw":"Introduction to the Phillips Curve","rendered":"Introduction to the Phillips Curve"},"content":{"raw":"<h2>What you'll learn to do: explain the reasoning behind the theory of the Phillips Curve and why it may not hold<\/h2>\r\n[caption id=\"attachment_10536\" align=\"aligncenter\" width=\"300\"]<img  class=\"wp-image-10536 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/06\/30162108\/6961562957_1ce7f6d4f6_o-300x199.jpg\" alt=\"Woman holds up a pink paper. The paper says &quot;the next pink slip might be yours!&quot;.\" width=\"300\" height=\"199\" \/> <strong>Figure 1.<\/strong> This woman is protesting while holding a \"pink slip\", or a notice of dismissal from employment. The Philipps Curve is a supposed inverse relationship between the level of unemployment and the rate of inflation.[\/caption]\r\n\r\nThe Phillips Curve is a key part of Keynesian economics, at least the Keynesian economics of the 1960s. In this section, you'll learn what makes the Phillips curve Keynesian, and why neoclassicals believe it may not hold in the long run. This speaks to the effectiveness of demand management policies, which is a major subject of this module.","rendered":"<h2>What you&#8217;ll learn to do: explain the reasoning behind the theory of the Phillips Curve and why it may not hold<\/h2>\n<div id=\"attachment_10536\" style=\"width: 310px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-10536\" class=\"wp-image-10536 size-medium\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2043\/2015\/06\/30162108\/6961562957_1ce7f6d4f6_o-300x199.jpg\" alt=\"Woman holds up a pink paper. The paper says &quot;the next pink slip might be yours!&quot;.\" width=\"300\" height=\"199\" \/><\/p>\n<p id=\"caption-attachment-10536\" class=\"wp-caption-text\"><strong>Figure 1.<\/strong> This woman is protesting while holding a &#8220;pink slip&#8221;, or a notice of dismissal from employment. The Philipps Curve is a supposed inverse relationship between the level of unemployment and the rate of inflation.<\/p>\n<\/div>\n<p>The Phillips Curve is a key part of Keynesian economics, at least the Keynesian economics of the 1960s. In this section, you&#8217;ll learn what makes the Phillips curve Keynesian, and why neoclassicals believe it may not hold in the long run. This speaks to the effectiveness of demand management policies, which is a major subject of this module.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2260\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li><strong>Authored by<\/strong>: Steven Greenlaw and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Pink Slip. <strong>Authored by<\/strong>: Michael Fleshman. <strong>Provided by<\/strong>: flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/fleshmanpix\/6961562957\/\">https:\/\/www.flickr.com\/photos\/fleshmanpix\/6961562957\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":74,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"\",\"author\":\"Steven Greenlaw and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Pink Slip\",\"author\":\"Michael Fleshman\",\"organization\":\"flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/fleshmanpix\/6961562957\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"95ba5b91-7dc2-48c8-8b5f-447d1b9cbcd8","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2260","chapter","type-chapter","status-publish","hentry"],"part":189,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/2260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/users\/74"}],"version-history":[{"count":33,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/2260\/revisions"}],"predecessor-version":[{"id":13029,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/2260\/revisions\/13029"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/parts\/189"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapters\/2260\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/media?parent=2260"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=2260"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/contributor?post=2260"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/wp-json\/wp\/v2\/license?post=2260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}