In general, there is:
A)a positive relationship between unemployment and inflation.
B)an inverse relationship between unemployment and inflation.
C)an inverse relationship between GNP and inflation.
D)a positive relationship between GNP and unemployment.

Question

Quizplus · Accepted Answer

The inverse relationship between unemployment and inflation is known as the Phillips curve. When unemployment is low, there is upward pressure on wages, which in turn leads to higher prices and inflation. On the other hand, when unemployment is high, there is less pressure on wages, which results in lower prices and inflation.

In General, There Is