Phillips curve

Phillips curve is the trade-off between unemployment and inflation.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Phillips curve. The trade-off between unemployment and inflation.

According to Macroeconomics by Mankiw (7th edition),

Phillips curve. A negative relationship between inflation and unemployment; in its modern form, a relationship among inflation, cyclical unemployment, expected inflation, and supply shocks, derived from the short-run aggregate supply curve.