Answer to Question #219439 in Microeconomics for bobie

Question

1.    Phillips found a negative relation between

a.     output and unemployment.

b.    output and employment.        

c.     inflation and output.

d.    inflation and unemployment.

Answer 1

The answer is D. Inflation and unemployment.

Explanation -

Phillips found that the inverse trade-off between inflation and unemployment. As one increases, the other must decrease.