The Phillips curve indicates that there is a ?
Correct answer: D. negative relationship between the inflation rate and the unemployment rate
- A. negative relationship between the inflation rate and labor demand
- B. positive relationship between labor supply and the inflation rate
- C. positive relationship between the inflation rate and the employment the
- D. negative relationship between the inflation rate and the unemployment rate
Explanation
The Phillips curve traditionally shows an inverse relationship between inflation and unemployment: higher inflation is associated with lower unemployment in the short run. The relationship with employment is also indirectly positive, but option d states the standard formulation.
Last updated
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
1. The most widely traded currency in the foreign exchange market is the ?
85% of the world's population lives in developing countries and receives about _____ of the world's income?
A 44-nation survey regrading religions found that_________________?
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?
A capital account surplus might be expected to cause a current account deficit because the associated ?