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- Subject
- Economics Mcqseconomics-mcqs
- Published
- 25 Feb 2025
- Last updated
- 28 May 2026
Which economic concept illustrates the inverse connection between inflation and unemployment?
Multiple choice question for Economics Mcqs. Select an option, then review the explanation below.
Explanation
The Phillips curve demonstrates the negative correlation between inflation and unemployment, indicating that as inflation increases, unemployment typically decreases, and vice versa. Okun’s law describes the relationship between unemployment and GDP growth. Say’s law proposes that supply creates its own demand. The U-shaped curve does not apply to this relationship.
More Economics Mcqs
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- 1.According to the World Bank, countries are grouped into four categories based on which of the following criteria?
- 2.Automatic stabilizers belong to which category of economic policy tools?
- 3.What is the likely effect of an increase in the money supply?
- 4.Which of the following does not constitute a part of the Gross Domestic Product (GDP)?
- 5.Which of the following best describes classical economics?