Asked by Katia Ferreira on May 21, 2024
Verified
The Phillips curve shows the relationship between various rates of unemployment and
A) interest rates.
B) real wage rates.
C) inflation.
D) the money supply.
E) investment demand.
Phillips Curve
An economic concept that depicts an inverse relationship between the rate of inflation and the rate of unemployment over the short term.
Inflation
The measure at which prices for general goods and services escalate, devaluing the purchasing power.
- Explain the concept of the Phillips curve and its significance for formulating economic policies.
Verified Answer
MD
mariama diabyMay 23, 2024
Final Answer :
C
Explanation :
The Phillips curve shows the relationship between rates of unemployment and inflation. As unemployment decreases, inflation tends to increase and vice versa, creating a downward-sloping curve.
Learning Objectives
- Explain the concept of the Phillips curve and its significance for formulating economic policies.
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