Question

Which of the following represents the inverse relationship between the rate of unemployment and the rate of increase in money wages?

• A. IS curve
• B. Phillips Curve
• C. LM curve
• D. Indifference curve

Hint:

Phillips Curve: Lower unemployment → higher wage inflation, and vice versa.

Answer 1

The Correct Option is B

Step 1: Recall macroeconomic curves.
- Phillips Curve shows the inverse relationship between wage inflation and unemployment