The Phillips Curve Shows

question 192

Multiple Choice

The Phillips curve shows

• A) the relationship between the rate of interest and planned investment.
• B) the relationship between the money supply and the price level.
• C) that an increase in government spending will decrease real national income.
• D) that when inflation is higher, the unemployment rate reduces.

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Definitions:

Bell Shaped Histograms

Histograms showing the frequency distribution of data that forms a symmetrical, bell-shaped curve, indicating a normal distribution.

Histograms

Graphical representations of the distribution of numerical data, showing the frequency of data within certain ranges.

Empirical Rule

A statistical norm that asserts for a normally distributed set of data, almost all of the data points are encompassed within three standard deviations from the mean value.

Sample Variance

The measure of dispersion of sample data points around the sample mean, providing an estimation of the population variance.