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

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The correct answer is:
**4. Philips curve** — It shows the empirical inverse relationship between the rate of wage change (or inflation) and unemployment.

**Wrong options:**

**1. Friedman’s model** — Focuses on monetary policy and expectations, not directly this empirical relationship.

**2. Keynesian model** — Deals with aggregate demand and employment, but not specifically this wage-unemployment relation.

**3. Baumol hypothesis** — Relates to cost disease in services, not unemployment and wage change.

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