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Single choice
Question26 The Phillips curve in the text shows the ________ relationship between ________. negative; inflation and unemployment negative; the change in inflation and unemployment positive; inflation and unemployment positive; the change in inflation and short-term economic fluctuations negative; the change in inflation and short-term economic fluctuations ResetMaximum marks: 1 Flag question undefined
Options
A.negative; inflation and unemployment
B.negative; the change in inflation and unemployment
C.positive; inflation and unemployment
D.positive; the change in inflation and short-term economic fluctuations
E.negative; the change in inflation and short-term economic fluctuations
View Explanation
Standard Answer
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Approach Analysis
Let’s break down what the question is asking and what each option implies about the Phillips curve as described in the text.
Option 1: 'negative; inflation and unemployment' This aligns with the conventional Phillips curve concept: a negative relationship between inflation and unemployment, meaning as unemployment falls, inflation tends to rise, and vice versa. It captures the core inverse trade-off discussed in many introductory treatments.
Option 2: 'negative; ......Login to view full explanationLog in for full answers
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Similar Questions
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