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CAIE A-Level Economics 10.2.5 Inflation & unemployment

Practise interpreting inflation and unemployment trade-offs using Phillips curves, data tables, expectations and policy targets.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • interpret unemployment and inflation data to identify Phillips curve relationships
  • use short-run and long-run Phillips curves to predict effects of demand changes
  • evaluate policy targets by linking lower unemployment to inflationary pressure

10.2.5—Inflation and unemployment question 1

[Maximum number: 1]

What does the Phillips curve show?

A

the relationship between economic growth and employment

B

the relationship between inequality and income per capita

C

the relationship between inflation and unemployment

D

the relationship between prices and national income

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