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Practice mode Aggregate Supply, Unemployment And Inflation

What relationship does the Phillips curve graph show?

Correct answer B. The inflation rate and the unemployment rate

Explanation

The Phillips curve plots the inflation rate against the unemployment rate, showing the inverse relationship observed in the data.

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Question 01 Aggregate Supply, Unemployment And Inflation

What did the view of the Phillips curve common in the 1960s imply about policies?

Correct answer C. Lower unemployment rate will tend to raise the inflation rate

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