Question

The Phillips curve, while historically indicative of an inverse relationship
A. between inflation and unemployment
B., has been subject of the critique of the natural rate hypothesis
C., challenging the sustainability of trade-offs
D. between these two macroeconomic variables on the long run E.

Q: Answer-The Phillips curve, while historically indicative of an inverse relationship A. between inflation an...

Subject of should be replaced with subject to that means being affected by something or influenced by something. In subject of the subject refers to a topic or subject of discussion. In the emboldened part on the long run is a phrase that has been used incorrectly. It should be in the long run that means eventually or following a long course of time.

A The Phillips curve, while historically indicative of an inverse relationship Correct Incorrect

B between inflation and unemployment Correct Incorrect

C has been subject of the critique of the natural rate hypothesis, Correct Incorrect

D challenging the sustainability of trade-offs Correct Incorrect

E All are correct Correct Incorrect

Detailed Solution

‘Subject of’ should be replaced with ‘subject to’ that means ‘being affected by something or influenced by something’. In ‘subject of’ the subject refers to a topic or subject of discussion. In the emboldened part ‘on the long run’ is a phrase that has been used incorrectly. It should be ‘in the long run’ that means ‘eventually’ or ‘following a long course of time’.

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The Phillips curve, while historically indicative of an inverse relationshipA. between inflation and unemploymentB., has been subject of the critique of the natural rate hypothesisC., challenging the sustainability of trade-offsD. between these two macroeconomic variables on the long run E.

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RBI Grade B 2026 Phase 1 Memory Based Paper

The Phillips curve, while historically indicative of an inverse relationship
A. between inflation and unemployment
B., has been subject of the critique of the natural rate hypothesis
C., challenging the sustainability of trade-offs
D. between these two macroeconomic variables on the long run E.