Experience with the Phillips Curve Since the 1970s Has Shown

question 17

Multiple Choice

Experience with the Phillips curve since the 1970s has shown that the:

• A) curve can be used as a reliable model to guide public policy.
• B) relationship between the inflation rate and the unemployment rate moves in a clockwise direction.
• C) curve is not stable.
• D) inflation rate and the unemployment rate are equal.

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Definitions:

Test Validation

The process of ensuring that a test accurately measures what it is intended to measure.

Content Validity

Refers to the extent to which a test measures all aspects of a given construct or domain of interest accurately.

Construct Validity

Construct validity refers to the extent to which a test or instrument measures the theoretical construct it is intended to measure.

Differential Validity

Differential validity is the extent to which a test predicts outcomes differently for distinct groups, often analyzed to assess fairness across demographics.