Each point on a Phillips curve is a different combination of:
A) price and quantity.
B) inflation and unemployment.
C) the interest rate and investment.
D) saving and disposable income.

Question

Quizplus · Accepted Answer

The Phillips curve shows the relationship between inflation and unemployment, with each point being a different combination of those two variables. Therefore, option B is the correct choice. Option A is not correct because quantity is not a variable in the Phillips curve. Option C is not correct because the interest rate and investment are not directly related to the Phillips curve. Option D is not correct because saving and disposable income are not variables in the Phillips curve.

Each Point on a Phillips Curve Is a Different Combination