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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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