The Phillips Curve shows the relationship between: MCQ with Answer and Explanation

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The Phillips Curve shows the relationship between:

A. Unemployment and inflation

B. Inflation and economic growth

C. Money supply and price level

D. Interest rate and investment

Answer: Option A

Solution (By JKSSB Mock Tests)

The Phillips Curve illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy in the short run.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is NOT a source of agricultural finance in India?

A. Stock exchanges for small farmers

B. Cooperative societies

C. NABARD

D. Commercial banks

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Correct Answer: Option A

Explanation:
Stock exchanges primarily serve corporate entities. Agricultural finance is provided by commercial banks, cooperatives, RRBs and refinanced by NABARD.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a cause of frictional unemployment?

A. Seasonal nature of agriculture

B. Decline of an industry

C. Economic recession

D. Time taken to find a new job after leaving the previous one

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Correct Answer: Option D

Explanation:
Frictional unemployment occurs due to the time lag involved in people searching for and moving between jobs. It is short-term and voluntary in nature.

This question belongs to: Economy GK Economy Set 1

Question #3

Commercial paper is a short-term instrument issued by:

A. state governments

B. highly rated corporate borrowers

C. individuals

D. RBI

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Correct Answer: Option B

Explanation:
Commercial paper is an unsecured short-term instrument issued by highly rated corporate borrowers.

This question belongs to: Economy GK Economy Set 1

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