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    Question

    Which of the following statements about the “Phillips

    Curve” is correct?         I.            The Phillips curve is an economic theory that inflation and employment have a stable and inverse relationship.       II.            it claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.
    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C Both are correct Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    The Phillips curve is an economic theory that inflation and unemployment have a stable and inverse relationship. Developed by William Phillips, it claims that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

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