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      Question

      The Phillips curve shows the trade-off between

      ----- and -----?
      A Inflation and interest rates Correct Answer Incorrect Answer
      B Inflation and unemployment rate Correct Answer Incorrect Answer
      C Interest rate and output Correct Answer Incorrect Answer
      D Inflation and output Correct Answer Incorrect Answer
      E Output and employment Correct Answer Incorrect Answer

      Solution

      The Phillips curve shows the trade-off between inflation and unemployment rates.

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