The Phillips curve exhibits A. the situation where cyclical unemployment becomes zero. B. the relationship between the unemployment and the inflation rates. C. the direct relationship between the unemployment and the inflation rates. D. the inverse relationship between the actual and the natural rate of unemployment.

B) The relationship between the unemployment and the inflation rates

Explanation:

the correct answer is the option B: the relationship between the unemployment and the inflation rates.

Explanation:

To begin with, the ''Phillips Curve'' is the name given to a single-equation economic model that was created by the economist William Phillips that was studied later by Milton Friedman and Edmund Phelps noticed in Phillips' statical findings that indeed existed an inverse relationship between the rates of unemployment and the rates of the inflation that occurs at the short run only due to the fact that at the long run inflationary policies would not decrease unemployment.

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