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SSC CGL 2024 PYQ — Question 39

SSC CGL - 13 Sep 2024 - Shift 3 • General Awareness • Q39

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What is the empirically fitted relationship between the rate of change of money, wage, and rate of unemployment known as?

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Correct answer: D

Explanation

The correct answer is option 4 i.e. Philips curve.

  • The empirically fitted relationship between the rate of change of money wages, wage levels, and the rate of unemployment is known as the Wage Phillips Curve.
  • This concept, introduced by economist A.W. Phillips in 1958, illustrates an inverse relationship between unemployment and the rate of change of money wages.
  • Specifically, it suggests that higher unemployment rates are associated with lower rates of wage inflation, while lower unemployment rates correspond to higher rates of wage inflation.