In the context of the Phillips Curve, the long-run Phillips Curve is: MCQ with Answer and Explanation

In the context of the Phillips Curve, the long-run Phillips Curve is:
A. Downward sloping
B. Vertical at the natural rate of unemployment
C. Horizontal
D. Upward sloping
Answer: Option B
Solution (By JKSSB Mock Tests)
In the long run, the Phillips Curve is vertical at the natural rate of unemployment, indicating no permanent trade-off between inflation and unemployment.

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Practice More Economy Set 1 Questions

Question #1
The 'Food Processing Industries' in India are classified as which sector?
A. Secondary
B. Quaternary
C. Primary
D. Tertiary

Correct Answer: Option A


Explanation:
Food processing is a secondary sector manufacturing activity.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Atal New India Challenge' is an initiative of:
A. Ministry of Defence
B. Atal Innovation Mission, NITI Aayog
C. Ministry of Finance
D. SEBI

Correct Answer: Option B


Explanation:
Atal New India Challenge is an initiative of Atal Innovation Mission under NITI Aayog.

This question belongs to: Economy GK Economy Set 1
Question #3
The Marginal Standing Facility allows banks to borrow overnight from RBI:
A. against corporate bonds
B. without any collateral
C. against foreign currency
D. against approved government securities

Correct Answer: Option D


Explanation:
MSF allows banks to borrow overnight from the RBI against approved government securities.

This question belongs to: Economy GK Economy Set 1