The Inverse Relationship Between Inflation and Unemployment Is Called

question 37

Multiple Choice

The inverse relationship between inflation and unemployment is called

• A)Okun's law
• B)the Lucas curve
• C)the Phillips curve
• D)the replacement ratio
• E)the sacrifice ratio

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Definitions:

Annual Growth Rate

The percentage increase in the value of a particular investment or portfolio over the period of a year.

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate of return.

Compounded Annually

Interest on an investment that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance grows at an increasing rate.