Which of the following best describes the short-run relationship expressed by the Phillips curve? A. When the inflation rate is high, so is the unemployment rate. B. When the inflation rate is low, so is the unemployment rate. C. Choosing a lower unemployment rate results in a higher inflation rate. D. Choosing a lower unemployment rate results in a higher deflation rate.

The correct answer is C. Choosing a lower unemployment rate results in a higher inflation rate.<br /><br />The Phillips curve represents the short-run relationship between inflation and unemployment. It suggests that there is a trade-off between the two variables in the short run. When the unemployment rate is low, it indicates that the economy is operating at or near full capacity, which tends to put upward pressure on prices, leading to higher inflation. Conversely, when the unemployment rate is high, it suggests that the economy is underperforming, which tends to put downward pressure on prices, leading to lower inflation.<br /><br />Therefore, the Phillips curve implies that policymakers face a trade-off when trying to achieve both low unemployment and low inflation. Choosing a lower unemployment rate typically results in a higher inflation rate, while choosing a lower inflation rate typically results in a higher unemployment rate.