Question:medium

The Phillips curve shows

Show Hint

Phillips curve shows the short-run trade-off between inflation and unemployment.

Updated On: May 22, 2026

A positive relationship between the real and nominal wage
An inverse relationship between rate of inflation and nominal wage
An inverse relationship between the rate of inflation and the rate of unemployment
A positive relationship between rate of inflation and real wage

Show Solution

The Correct Option is C

Solution and Explanation

Was this answer helpful?

0

Top Questions on Inflation

Questions Asked in CUET (PG) exam

A trade-off is:

CUET (PG) - 2024
Trade-offs

If a Production Function is given as Q(x,y) = Axay, where (a + b) = 2, the function is said to display:

CUET (PG) - 2024
Production Theory

In an oligopolistic market, firm i and firm j have constant marginal cost = c for an identical good. They compete to set prices Pi and Pj. The demand for total market demand Q, where if \(P_i > P_j\), the demand for firm i is 0. If \(P_i < P_j\), the demand for firm i is Q. If \(P_₁ = P_j\), then they share the market equally and hence the demand for firm i is \(\frac{Q}{2}\). In equilibrium, the prices of firms i and j are:

CUET (PG) - 2024
Oligopoly

If Y = F(L,K) is a linear homogeneous production function, then multiplying all inputs by a constant factor α = 2 results in output increasing by a factor of:

CUET (PG) - 2024
Production Function

In the table below, firm 1 and firm 2 can cooperate to share market profits or compete with each other. The figures in the cells represent the profits in crores of INR. They can either cooperate with each other where they share INR 10 crores equally. Alternatively, they can compete, which lowers the market output to INR 4 crores, which they share equally. If one of the firms competes while the other cooperates, the former obtains INR 10 crore of profit while the other makes zero profit. In equilibrium, firm A and firm B should respectively:

Firm 2	Cooperate	Compete
Firm 1	5, 5	0, 10
Compete	10,0	2, 2

CUET (PG) - 2024
Game theory