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    Question

    The Phillips Curve represents the relationship between

    ________.
    A Deflation and Unemployment Correct Answer Incorrect Answer
    B Inflation and Unemployment Correct Answer Incorrect Answer
    C Inflation and Unemployment Correct Answer Incorrect Answer
    D Deflation and Cyclical Unemployment Correct Answer Incorrect Answer

    Solution

    The Phillips Curve shows an inverse relationship between inflation and unemployment in the short term. When unemployment decreases, inflation tends to rise, and vice versa.

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