Asked by Nancy Lainez on Jun 21, 2024
Verified
In the 1950s,A W Phillips investigated the relationship between
A) wage and price inflation.
B) the unemployment rate and the rate of change in interest rates.
C) the unemployment rate and the rate of change in prices.
D) output and price changes.
A W Phillips
An economist known for the Phillips Curve, which suggests an inverse relationship between unemployment and inflation rates.
Unemployment Rate
The quota of the working-age population that is without a job and searching for one.
Rate Of Change
A measure that determines the extent to which a quantity grows or declines over a particular period of time, often expressed as a percentage.
- Understand the Phillips curve and its implications for the trade-off between inflation and unemployment.
Verified Answer
DR
Doris RiveraJun 25, 2024
Final Answer :
C
Explanation :
A.W. Phillips is best known for investigating the relationship between the unemployment rate and the rate of change in wages (or prices), which is famously represented by the Phillips Curve. This curve illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.
Learning Objectives
- Understand the Phillips curve and its implications for the trade-off between inflation and unemployment.