Question

Which of the following statements is incorrect regarding Phillips’s curve?

A High inflation and high unemployment are because of recession/depression Correct Answer Incorrect Answer
B As per Friedman, there is no relation between unemployment and inflation in the long-run Correct Answer Incorrect Answer
C It depicts relationship between inflation rate and unemployment rate Correct Answer Incorrect Answer
D None of these Correct Answer Incorrect Answer
E All of these Correct Answer Incorrect Answer

Solution

High inflation and high unemployment are because of stagflation

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