The Phillips curve illustrates the short-run relationship between:

A GDP and interest rates

B Inflation and unemployment

C Savings and investment

D Imports and exports

✓ Correct Answer: Option B

The Phillips curve shows an inverse short-run relationship between unemployment and inflation.

💡 Why is B) the correct answer?

The correct answer to the question "The Phillips curve illustrates the short-run relationship between:" is Option B: Inflation and unemployment.

The other options — A) GDP and interest rates, C) Savings and investment, D) Imports and exports — are incorrect for this CFA Exam Prep question. As explained above: The Phillips curve shows an inverse short-run relationship between unemployment and inflation.

📚 About This CFA Exam Prep Practice Question

This 2-level CFA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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The Phillips curve illustrates the short-run relationship between:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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