The Graphs Below Show the Simplified Phillips Curves in the United

question 25

Multiple Choice

The graphs below show the simplified Phillips curves in the United States, between 1960 and 2016. The data in Panel B for the period between 1970 and 2016 shows:

• A) there is a tradeoff between inflation and unemployment.
• B) inflation and unemployment are positively correlated.
• C) inflation and unemployment are negatively correlated.
• D) no apparent relationship between inflation and unemployment.

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Definitions:

Crystallized G

Refers to the body of knowledge and skills that one acquires through experience and education, reflecting the ability to apply learned material.

Procedural Memory

The type of long-term memory that is responsible for knowing how to perform different actions and skills, often referred to as "muscle memory".

Factor Analysis

A statistical method used to describe variability among observed variables in terms of a potentially lower number of unobserved variables called factors.

General Intelligence

A theorized cognitive ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one’s environment.