Post Utme Uniport 2023 Economics Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Uniport Economics examination.

Post Utme Uniport 2023 Economics Objective / Multiple Choice
Question 1 POST_UTME_UNIPORT • 2023 • ECONOMICS • objective

A country's government is considering a policy to reduce inflation by increa\sing interest rates. However, this policy may also lead to a decrease in economic growth. U\sing the Phillips Curve model, explain the trade-off between inflation and unemployment in this scenario.

Answer Options

A. The Phillips Curve shows a direct trade-off between inflation and unemployment, where a decrease in inflation leads to an increase in unemployment.
Correct Answer B. The Phillips Curve shows an inverse trade-off between inflation and unemployment, where a decrease in inflation leads to a decrease in unemployment.
C. The Phillips Curve does not show a trade-off between inflation and unemployment.
D. The Phillips Curve shows a trade-off between inflation and economic growth, where a decrease in inflation leads to an increase in economic growth.
Correct Answer
B
Correct Option:
The Phillips Curve shows an inverse trade-off between inflation and unemployment, where a decrease in inflation leads to a decrease in unemployment.

About This Question

This is Post Utme Uniport 2023 Economics Question 1. It is one of the objective questions from the 2023 Post Utme Uniport Economics examination.

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