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      Question

      Which of the following statements accurately describes

      the relationship between inflation and the Phillips curve?
      A The Phillips curve suggests that there is a positive relationship between inflation and unemployment. Correct Answer Incorrect Answer
      B The Phillips curve suggests that there is a negative relationship between inflation and unemployment. Correct Answer Incorrect Answer
      C The Phillips curve suggests that there is no relationship between inflation and unemployment. Correct Answer Incorrect Answer
      D The Phillips curve suggests that there is a positive relationship between inflation and economic growth. Correct Answer Incorrect Answer
      E The Phillips curve suggests that there is a negative relationship between inflation and economic growth. Correct Answer Incorrect Answer

      Solution

      A Phillips curve implies a negative (or inverse) relationship between inflation and unemployment: when one is high, the other tends to be low, and vice versa 

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