Topic 6 MCQ Question (Inflation & Unemployment)
1.The negative relationship between unemployment and inflation is known as the
a.aggregate demand curve.
b.efficiency wage line.
c.aggregate supply curve.
2.Based on the theory of the expectations-augmented Phillips curve, if the expected inflation
rate is 2%, the short-run Phillips curve will
3.The Phillips curve suggests that monetary policymakers could use monetary policy to