-Which of the following statements best describes the relationship portrayed by this curve?
A)The demand for labour is high when the inflation rate is low.
B)The inflation rate is high when the unemployment rate is high.
C)The rate of increase in the price level and the unemployment rate are inversely related.
D)The rate of increase in the price level and the unemployment rate are directly related.
E)The demand for labour is low when the unemployment rate is low.

Question

-Which of the following statements best describes the relationship portrayed by this curve?
A)The demand for labour is high when the inflation rate is low. 
B)The inflation rate is high when the unemployment rate is high. 
C)The rate of increase in the price level and the unemployment rate are inversely related. 
D)The rate of increase in the price level and the unemployment rate are directly related. 
E)The demand for labour is low when the unemployment rate is low.

Quizplus · Accepted Answer

This curve likely refers to the Phillips Curve, which illustrates the inverse relationship between the rate of inflation (increase in the price level) and the unemployment rate.

-Which of the Following Statements Best Describes the Relationship Portrayed