The Philips curve forecast involves using as part of the y variable with unemployment and as parts of x variables. This statement is true.
The average association between wage behaviour and unemployment over the course of the business cycle was illustrated by Phillips' "curve." It displayed the rate of wage inflation that would occur if a specific unemployment rate maintained over an extended period of time. Phillips curve estimates were made quickly for the majority of industrialised economies.
The Phillips curve shows a consistent negative relationship between unemployment and inflation. According to William Phillips' theory, inflation follows economic expansion and should result in more jobs and lower unemployment.
= e h (u u N),h > 0. (1) Here, the inflation rate is, and the predicted inflation rate is e. Here, h is a constant positive coefficient and u is unemployment.
To learn more abut Philips curve refer to :
https://brainly.com/question/28005556
#SPJ4
