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Example Questions
Example Question #2 : Graphs
Which of the following is the best definition of the concept behind the Phillips Curve?
Possible Answers:
The relationship between government spending and the multiplier effect
The relationship between unemployment and inflation
The relationship between worker pay and productivity.
The relationship between net exports and GDP
Correct answer:
The relationship between unemployment and inflation
Explanation:
The Phillips Curve is meant to express the short-run tradeoff between inflation and unemployment.
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