July 1986Volume 36, 1986
JUNE 01, 1986
AUGUST 01, 1975 by SCOTT W. BIXLER
An educational alternative consistent with the principles of a free society.
JUNE 01, 1986 by HANS SENNHOLZ
Keynesian economics postulates a definite relationship between unemployment and inflation. Goods prices remain stable, according to Keynesian theory, as long as there is some unemployment. Inflation raises its head only beyond the full employment mark when demand exceeds supply and no idle resources are available to increase output (demand-pull inflation). The relationship is said to be illustrated by the Phillips curve named after A. W. Phillips, a British economist.