The Phillips Curve Shows a ______ Relationship Between Inflation and Unemployment

question 72

Multiple Choice

The Phillips curve shows a ______ relationship between inflation and unemployment, and the short-run aggregate supply curve shows a ______ relationship between the price level and output.

• A) positive; positive
• B) positive; negative
• C) negative; negative
• D) negative; positive

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Definitions:

Partner

A partner is an individual or entity engaged in a partnership, sharing the profits, losses, and management responsibilities within the business agreement.

Net Income

The leftover financial gain of a corporation once expenses and taxes are deducted from the total revenue.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.

Interest Allowances

Financial incentives or rebates given to borrowers, typically reducing the amount of interest they need to pay on loans.