It shows the trade-off between unemployment and inflation :

Which of the following statement(s) is/are true with respect to Phillips Curve?
1. It shows the trade-off between unemployment and inflation
2. The downward sloping curve of Phillips Curve is generally held to be valid only in the short run
3. In the long run, Phillips Curve is usually thought to be horizontal at the non-accelerating inflation rate of unemployment (NAIRU)
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3

Anurag Mishra Professor Asked on 15th February 2016 in General Knowledge.
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  • 1 Answer(s)

    Answer: (a) 1 only 

    Anurag Mishra Professor Answered on 16th February 2016.
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