Question

The Phillips curve is the schedule showing the relationship between ?

• A. Aggregate supply and demand
• B. Total saving and investment
• C. The rate of unemployment and rate of inflation
• D. Demand for and supply of loanable funds

Hint:

Phillips Curve = Inverse relation between inflation and unemployment.

Answer 1

The Correct Option is C

Step 1: The Phillips Curve is an economic concept introduced by A.W. Phillips.
Step 2: It illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.
Step 3: Lower unemployment often comes with higher inflation, and higher unemployment tends to reduce inflation. \[ \boxed{\text{Unemployment vs. Inflation}} \]