Financial Calculation Summary • Business
Phillips Curve Calculator
A simplified model to show the trade-off between inflation and unemployment.
Prepared on
For informational & planning purposes
Phillips Curve Calculator
A simplified model to show the trade-off between inflation and unemployment.
- phillips curve
- inflation
- unemployment
- macroeconomics
- economics
Key Takeaway: Inflation % decreases from $5 (undefined) to $1.5 (undefined), a net change of $-3.5 (-70.0%).
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Guide
How to read this calculator
- 1Save your calculations by bookmarking this page with your inputs in the URL.
- 2Try different scenarios to understand how changes affect your results.
- 3Share this calculator with friends or family who might find it useful.
- 4Use the results as a starting point for conversations with financial advisors.
- 5Bookmark this page and revisit quarterly to track your progress toward goals.
The Phillips Curve Calculator helps you make informed decisions by calculating phillips curve-related values. A simplified model to show the trade-off between inflation and unemployment.
Step-by-Step Instructions
Enter your revenue, costs, and business metrics in the input fields.
Review the calculated results displayed in real-time.
Compare different scenarios using the comparison view.
Apply the insights to your financial decisions.
To understand the inverse relationship between unexpected inflation and cyclical unemployment.
- •Students
- •Economists
- •Policymakers
- •Financial Analysts
Scenario
A central bank is analyzing a scenario where expected inflation is 2%, the natural unemployment rate is 5%, and the current unemployment rate is 4%. They want to understand the inflationary pressure.
Outcome
The calculator shows a cyclical unemployment of -1% and a resulting inflation rate of 2.5% (with ╬▒=0.5), indicating that the lower unemployment is creating upward pressure on inflation.
Still have questions? Check our financial glossary for definitions or explore our learning resources.