The 'Phillips curve' in the long run is generally considered to be: MCQ with Answer and Explanation

Question

Share Report Error

The 'Phillips curve' in the long run is generally considered to be:

A. upward sloping

B. horizontal

C. vertical at the natural rate of unemployment

D. downward sloping

Answer: Option C

Solution (By JKSSB Mock Tests)

The long-run Phillips curve is vertical, implying no permanent trade-off between inflation and unemployment.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Per capita income is obtained by dividing national income by:

A. total number of households

B. total population

C. total working population

D. total labour force

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Per capita income is national income divided by mid-year total population.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'unbalanced growth theory' was proposed by:

A. John Maynard Keynes

B. Albert Hirschman

C. Paul Rosenstein-Rodan

D. Arthur Lewis

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Albert Hirschman proposed the theory of unbalanced growth.

This question belongs to: Economy GK Economy Set 1

Question #3

Foreign Direct Investment is distinguished from Foreign Portfolio Investment mainly by:

A. lasting interest and managerial control

B. investment only in government securities

C. short-term currency trading

D. the amount of investment

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
FDI involves lasting interest and managerial control, while FPI does not.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs