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

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

A. horizontal

B. vertical at the natural rate of unemployment

C. downward sloping

D. upward sloping

Answer: Option B

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

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Question #1

The 'Gift City' in Gujarat is an International Financial Services Centre that offers:

A. only commodity trading

B. only stock trading

C. tax incentives and international financial services

D. only domestic banking

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Correct Answer: Option C

Explanation:
GIFT City offers international financial services with tax and regulatory incentives.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on courier services is:

A. 18%

B. 12%

C. 28%

D. 5%

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Correct Answer: Option A

Explanation:
Courier services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the classical theory of employment?

A. Full employment as a normal condition

B. Liquidity trap

C. Importance of effective demand

D. Possibility of underemployment equilibrium

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Correct Answer: Option A

Explanation:
Classical theory assumes that the economy always tends towards full employment through flexible wages and prices. Underemployment equilibrium and liquidity trap are Keynesian concepts.

This question belongs to: Economy GK Economy Set 1

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