A Phillips curve shows the relationship between the inflation rate and the:
A)wage rate.
B)unemployment rate.
C)real GDP growth rate.
D)population growth rate.

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between the inflation rate and the unemployment rate, suggesting that as inflation increases, unemployment tends to decrease, and vice versa.

A Phillips Curve Shows the Relationship Between the Inflation Rate