The Graph Below Shows the Relationship Between the Rate of Inflation

question 63

Multiple Choice

The graph below shows the relationship between the rate of inflation and the rate of unemployment. Inflation tends to be higher when the unemployment rate is lower. Which model is it?

• A) the unemployment rate model
• B) the Keynesian model
• C) the simplified Phillips model
• D) the classical model

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Minimum Value

The lowest possible amount, price, or level that something can reach.

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The total expenditure of the federal government, including spending on defense, welfare, infrastructure, and other public services.

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