Introduction to Economics 1 Deneme Sınavı Sorusu #716206

What is illustrated by Phillippes curve?


Marginal revenue and marginal cost

Cause of inflation and its harmful effects

Purchasing power and high inflation

Money supply and high inflation

Tradeoff between inflation and unemployment 


Yanıt Açıklaması:

A Phillips curve shows the tradeoff between unemployment and inflation in an economy.  While this relationship examined first by the British economist William Phillips raised much controversy in economics in the past, most economists today recognize the possibility of the presence of a tradeoff between inflation and unemployment at least in the short-run. The correct answer is E.

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