Q. Consider the following statements:
The above statements refer to which one of the following graphs?
Q. Consider the following statements:
The above statements refer to which one of the following graphs?
The correct option is B
Philip Curve
Explanation:
Option (a) is incorrect: Gini index is a method or a way adopted to compare income distribution in a society.
Option (b) is correct: Phillips curve reflects the trade-off between unemployment and inflation as it indicates the inverse relationship between unemployment rate and inflation. According to Phillips curve, higher the rate of inflation, lower is the unemployment and vice-versa.
Option (c) is incorrect: The Lorenz curve is a graphical representation of the distribution of income or of wealth.
Option (d) is incorrect: The Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue.
Philip Curve
Explanation:
Option (a) is incorrect: Gini index is a method or a way adopted to compare income distribution in a society.
Option (b) is correct: Phillips curve reflects the trade-off between unemployment and inflation as it indicates the inverse relationship between unemployment rate and inflation. According to Phillips curve, higher the rate of inflation, lower is the unemployment and vice-versa.
Option (c) is incorrect: The Lorenz curve is a graphical representation of the distribution of income or of wealth.
Option (d) is incorrect: The Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue.
