The Relationship Between Inflation and Unemployment Shown Along a Phillips

question 29

Multiple Choice

The relationship between inflation and unemployment shown along a Phillips curve is a(n) :

• A)direct relationship.
• B)quadratic relationship.
• C)exponential relationship.
• D)inverse relationship.
• E)parabolic relationship.

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Definitions:

Excise Tax

A tax applied to specific goods, services, or activities, often to discourage their use or to raise government revenue.

Price Of Cigarettes

The cost that consumers pay to purchase cigarettes, which can vary widely based on taxes, manufacturing costs, and availability.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to produce at that price.

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.