A) An inverse relationship between the rate of unemployment- and the rate of inflation
B) A directly proportionate of the rate of unemployment and the rate of the inflation
C) An inverse relationship between the rate of GDP growth and the rate of inflation
D) A directly proportionate of the rate of unemployment and the rate of the unemployment
Correct Answer: A
Solution :
In economics, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result in an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation.
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