The Phillips Curve Is an Empirical Relation Which States That

question 35

Multiple Choice

The Phillips curve is an empirical relation which states that:

• A) when unemployment becomes high, this leads to downward pressure on bond prices.
• B) when unemployment becomes high, this leads to upward pressure on inflation.
• C) when unemployment becomes high, this leads to downward pressure on stock prices.
• D) when unemployment becomes low, this leads to downward pressure on inflation.
• E) when unemployment becomes low, this leads to upward pressure on inflation.