📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Consider the following statements about the Phillips

      Curve: 1. The Phillips Curve shows an inverse relationship between inflation and unemployment. 2. In the long run, the Phillips Curve becomes a vertical line. 3. It is a universally accepted theory without exceptions. Which of the above statements are correct?
      A 1 and 2 only Correct Answer Incorrect Answer
      B 2 and 3 only Correct Answer Incorrect Answer
      C 1 and 3 only Correct Answer Incorrect Answer
      D 1, 2, and 3 Correct Answer Incorrect Answer

      Solution

      The Phillips Curve illustrates an inverse relationship between inflation and unemployment (statement 1). In the long run, it becomes vertical as inflation expectations adjust (statement 2). It has exceptions, such as stagflation, where both inflation and unemployment rise (statement 3 is incorrect).

      Practice Next
      More Weekly Quiz GA for SSC Questions

      Relevant for Exams:

      ask-question