Macro: Unit 3.6 -- The Phillips Curve

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
- Review the origins of the Phillips curve
- Discuss the inverse relationship between the inflation rate and the unemployment rate in
the short-run, leading to a downward-sloping short-run Phillips curve
- Discuss the constant relationship between the inflation rate and the natural rate of
unemployment in the long-run, leading to a perfectly vertical long-run Phillips curve
- Practice graphing how changes in aggregate demand will change the inflation rate and
the unemployment rate on a short-run Phillips curve
- Practice graphing how changes in short-run aggregate supply will change the inflation rate
and the unemployment rate on a short-run Phillips curve
- Practice graphing how changes in long-run aggregate supply will change the inflation rate
and the natural rate of unemployment on a long-run Phillips curve

Are you looking to teach this topic in your class? We have designed an activity to fit perfectly with this video:

Follow our store on Teachers Pay Teachers

Look for us on Social Media:

Subscribe to our YouTube Channel:

[ahmedkheiri]

Probably the best economics teacher ever, really helped me prepare and learn the information that my professor was not teaching well. Earned a subscriber!

[albinagilazutdinova]

This explained me so much, it's just brilliant! Thank you for your work, I think every year this video will be saving dozens and dozens of students lives !

[kenetmartinez]

GOD I LOVE YOU. I'm from Colombia and doing some research to complete a presentation to finally graduate from school, i suddenly find you. Your explanation is totally coherent and i really appreciate that. Earned a sub!

[annp]

Simply put with nice pacing. I’m extremely relieved and grateful that I found this channel right before my Phillips test. The AP Macro and Micro exams are a few weeks away, and I definitely feel more confident about taking it by watching your videos. Thank you! :)

[omkumar]

best economic teacher. best video, fully conceptually, and good understanding cover all things in one video with best use of senytences and economic vocabullary.

[ATorres]

This video did a great job combining the two graphs into a meaningful gauge of how real-world events impact the economy. You have a very engaging demeanor when teaching. At the beginning of the video I was worried that the material was aimed solely at people who have taken an economics course, but I think anyone who watches the video completely will appreciate the main ideas being taught. Thank you for the quality video!

[arshisid]

Wonderfully explained! loved the normal pace.

[hollygoodman]

Best economics teacher. I really appreciate the pace you teach at because it gives me time to understand. I appreciate you! :)

[ym-j-vy]

I have a final exam tomorrow and this video is life saving for me. Thank you very much.

[ponpailinchew]

Hi there, firstly, my greatest appreciation to you and your videos for teaching me more than my lectures. Also, may I request if you are able to upload videos on the IS LM model in an open and close economy. I'm having difficulty trying to understand the relationship of the equations and the graphical representations. I would very much appreciate it! thank you

[angelojeremias]

I'm from Chile and you help me a lot with your videos, thanks(:

[bziophw]

Thank you Mr. Willis this is a really helpful video! I shows clearly how the ADAS model and Phillips curve is related

[pallavijain]

The best explantion on Phillips curve.
Thank you so much

[zackkassner]

Just wanted to let you know that you helped me big time. I hope your having a good day man.

[djalmapaz]

Amazing presentation, thanks so much.

[indianantiques]

Would be immensely indebted to to you Mr willis if you could create a playlist in Welfare economics

[elainarosilez]

this video really helps me with economics

[rmgulamnurulimam]

Thank you very much, this helping a lot

[fatoskryeziu]

When don't like commenting on yt, but you have to. Thank you, Mr.W.! 😊

[classicalethics]

I'm confused. At the 1:50 mark, he says that, as unemployment rises deflation occurs. Yet economist Charles Goodhart says that, while dependents are inflationary, workers are deflationary. He explains it this way. When a business hires a worker and expects $100, 000 in productivity, he pays him $70, 000, thus netting a $30, 000 profit. In other words, the worker is generating more productivity than he's getting paid for. Money is a measurement of productivity. The more productivity = the more money. If there is INCREASED productivity in the system and less pay, that creates deflation. I get that. Then why does the Phillips Curve seem to suggest the opposite?