The Phillips Curve represents relationship between:

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(b) Inflation and Unemployment — The inverse relationship between unemployment rate and inflation when graphically charted is called the Phillips curve. William Phillips pioneered the concept first in his paper "The Relation between Unemployment and the Rate of Change of Money Wage Rates” in the United Kingdom. The theory states that the higher the rate of inflation, the lower the unemployment and vice-versa. Thus, high levels of employment can be achieved only at high levels of inflation. The policies to induce growth in an economy, increase in employment and sustained development are heavily dependent on the findings of the Phillips curve.

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(A) Deflation and Unemployment

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(C) Inflation and Disguised Unemployment

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(D) Deflation and Cyclical Unemployment

The Phillips Curve represents relationship between:

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