Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2007 › Q33
2 marksMacroeconomics › Inflation, unemployment and the Phillips curve › The natural rate of unemployment and NAIRUModerateabout 3 min

DSE 2007 Question 33: Inflation, unemployment and the Phillips curve

With a technology where one employed worker produces one unit of output (so Y=NY=NY=N, and u=1−Y/L‾u=1-Y/\overline{L}u=1−Y/L), an increase in output ceteris paribus leads to

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

With a technology where one employed worker produces one unit of output (so Y=N, and u=1-Y/L̅), an increase in output ceteris paribus leads to (A) an increase in the actual price level (B) a decrease in the actual price level (C) the actual price level will remain unchanged (D) given information is not sufficient to conclude anything about the change in actual price level

Also written as: With a technology where one employed worker produces one unit of output (so Y=N, and u=1-Y/L_bar), an increase in output ceteris paribus leads to

Inflation, unemployment and the Phillips curve has come up 106 times in 7 exams since 2006.

What this question tests

This question is on The natural rate of unemployment and NAIRU, part of Inflation, unemployment and the Phillips curve in Macroeconomics.

The unemployment rate consistent with stable inflation and what determines it.

TestStop has 19 past-paper questions on this subtopic.

Practise Inflation, unemployment and the Phillips curveMore on The natural rate of unemployment and NAIRU

Similar questions from other papers

  • CUET-PG 2026 · Q17The Phillips curve shows
  • GATE 2026 · Q34Unanticipated inflation rate, percentage change of output from full employment level, and the Okun's law yield (i) and it represents (ii) side of the economy. Which one…
  • IIT JAM 2026 · Q48In an expectations-augmented Phillips curve equation, expected inflation rate and natural rate of unemployment are 5% and 4%, respectively. The responsiveness of…
  • UGC-NET 2026 · Q9Which of the following is NOT a cause for Structural Inflation?
  • CUET-PG 2025 · Q44According to monetarist thought, the natural rate of unemployment and output is not determined by

Question from the DSE 2007 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.