Which one of the following laws/curves stated that the lower the unemployment in an economy, the higher the rate of inflation?

Gini's Curve

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Verdoorn's law

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Gibrats law

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Phillips curve

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Solution

The correct option is D Phillips curve
Philips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Philip's curve stated that the lower the unemployment in an economy, the higher the rate of inflation.

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Similar questions

Q41.Consider the following statements:

1. Phillips Curve is representation of the relationship between tax rates and tax revenue collected by governments.

2. Laffer curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result within an economy

Which of the above statement(s) is/are correct?

State any one assumption for the construction of the curve that shows the possibilities of potential production of two goods in an economy.

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