Post Utme Lautech 2021 Economics Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Lautech Economics examination.

Post Utme Lautech 2021 Economics Objective / Multiple Choice
Question 21 POST_UTME_LAUTECH • 2021 • ECONOMICS • objective

An economy is said to be in a state of stagflation if it experiences both high inflation and high unemployment. U\sing the Phillips Curve model, explain why this phenomenon occurs.

Answer Options

A. The Phillips Curve shows a negative relationship between inflation and unemployment.
B. The Phillips Curve shows a positive relationship between inflation and unemployment.
Correct Answer C. The Phillips Curve shows a negative relationship between inflation and unemployment, but the curve shifts to the right due to stagflation.
D. The Phillips Curve shows a positive relationship between inflation and unemployment, but the curve shifts to the left due to stagflation.
Correct Answer
C
Correct Option:
The Phillips Curve shows a negative relationship between inflation and unemployment, but the curve shifts to the right due to stagflation.

About This Question

This is Post Utme Lautech 2021 Economics Question 21. It is one of the objective questions from the 2021 Post Utme Lautech Economics examination.

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