Innovative Economics Phillips Curve Test - 72+ MCQs: Economics - Phillips Curve Quiz: Assess Your Understanding with Questions and Answers

1. Which term refers to a situation where there is an economic downturn accompanied by deflation?

Stagflation

Hyperinflation

Recession

Disinflation

2. What does 'cost-push inflation' refer to?

Inflation caused by excessive demand in the economy

Inflation caused by an increase in production costs

Inflation caused by monetary policy decisions

Inflation caused by an increase in consumer spending

3. How does the concept of 'adaptive expectations' relate to the Phillips Curve?

It suggests that individuals base future expectations solely on past experiences

It introduces the idea of rational expectations

It argues that expectations have no impact on economic outcomes

It focuses on forward-looking expectations

4. In the context of the Phillips Curve, what does 'stagflation' refer to?

High inflation and low unemployment

Low inflation and high unemployment

High inflation and high unemployment

Low inflation and low unemployment

5. What does the 'Long Run Phillips Curve' depict?

It illustrates the relationship between inflation and unemployment in the short run

It focuses on the impact of supply shocks on economic outcomes

It represents the natural rate of unemployment

It shows the relationship between inflation and unemployment in the long run

6. What does the 'Lipsey curve' primarily illustrate?

The relationship between inflation and unemployment

The inverse relationship between job vacancies and unemployment

The impact of supply shocks on economic outcomes

The effect of fiscal policy on economic stabilization

7. Which term describes a situation where inflation increases while unemployment decreases?

Disinflation

Deflation

Hyperinflation

Reflation

8. Which of the following best describes the short-run Phillips Curve?

Vertical line

Horizontal line

Downward sloping line

Upward sloping line

9. In the short-run, the Phillips Curve typically shows a(n):

Vertical line

Horizontal line

Downward sloping line

Upward sloping line

10. What does the 'Lipsey curve' illustrate?

The relationship between inflation and unemployment

The inverse relationship between job vacancies and unemployment

The impact of supply shocks on the economy

The effect of monetary policy on economic outcomes

Economics - Phillips Curve MCQ Test 5