What Does the Phillips Curve Show

question 52

Multiple Choice

What does the Phillips curve show?

• A) The output gap for an economy over a number of years.
• B) The relationship between output and interest rates.
• C) The relationship between unemployment and in?ation.
• D) The growth rate of potential GDP over a period of time.

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Definitions:

Estimate

An approximation or informed guess of a quantity or value when the exact number is unknown or uncertain.

Sample Variance

A measure of the dispersion or spread of the sample data points around the sample mean, estimating the variance of the population from which the sample was drawn.

Treatment

In experimental research, an intervention or condition applied to subjects to observe its effects on some outcome or variable.

Sample Size

The number of observations or elements selected from a population for the purposes of statistical analysis.