One example of a Phillips Curve would be a
A) positive relationship between deviations from trend in real and nominal interest rates.
B) negative relationship between deviations from trend in real and nominal interest rates.
C) positive relationship between deviations from trend in the level of a money price (the wage rate) prices and the level of aggregate economic activity.
D) negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity.
E) positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity.

Question

Quizplus · Accepted Answer

The Phillips Curve is a graphical representation of the relationship between the rate of inflation and the rate of unemployment. It is typically a downward-sloping curve, indicating that as the rate of inflation increases, the rate of unemployment decreases.

One Example of a Phillips Curve Would Be a