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      Question

      Philips Curve is a graphic curve advocating a

      relationship between which factors?
      A Inflation and Employment Correct Answer Incorrect Answer
      B Inflation and Unemployment Correct Answer Incorrect Answer
      C Industrial Growth and Employment Correct Answer Incorrect Answer
      D Economic Growth and Inflation Correct Answer Incorrect Answer
      E Economic Growth and Employment Correct Answer Incorrect Answer

      Solution

      The Phillips curve is an economic concept developed by A. W. Phillips showing that inflation and unemployment have a stable and inverse relationship. The theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

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