Phillips Found a Negative Relation Between

question 26

Multiple Choice

Phillips found a negative relation between

• A)output and unemployment.
• B)output and employment.
• C)wage inflation and unemployment.
• D)None of the above is correct.

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically earns higher interest than regular savings accounts.

Simple Interest Rate

The percentage of interest calculated only on the principal amount of a loan or investment, without compounding.

Treasury Bill

A short-term government security issued at a discount from par value and paying no interest, maturing in a year or less.

Simple Interest

Interest calculated only on the principal amount, without compounding on accumulated interest.