The Phillips Curve Describes the

question 3

Multiple Choice

The Phillips curve describes the

• A) negative relationship between the inflation rate and real aggregate economic activity.
• B) negative relationship between the inflation rate and the unemployment rate.
• C) negative relationship between the inflation rate and real wage rate.
• D) positive relationship between the inflation rate and real aggregate economic activity.
• E) positive relationship between the inflation rate and the unemployment rate.

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Definitions:

Welfare

The well-being, health, and economic security of individuals or populations, often associated with government support policies.

TANF Program

The TANF Program, or Temporary Assistance for Needy Families, is a federal assistance program in the United States designed to help needy families achieve self-sufficiency.

Welfare

A government program designed to support the well-being of its citizens, especially those in financial need.

Employment

The state of having paid work, or the total number of people who are currently hired in a certain region or industry.