Which of the Following Statements Best Characterizes the Original Tradeoff

question 47

Multiple Choice

Which of the following statements best characterizes the original tradeoff discovered by W. Phillips in 1957?

• A)When the unemployment rate was very low, the rate of increase in employment was very high.
• B) When the unemployment rate was very high, the rate of increase in overall prices was very high.
• C) When the unemployment rate was very low, the rate of increase in wages was very high.
• D) When the unemployment rate was very low, the rate of increase in wages was very low.