Looking at the performance of the U.S.economy over the last five decades we realize that
A)whenever the inflation rate has decreased, the unemployment rate has also decreased
B)whenever the unemployment rate has increased, the inflation rate has decreased
C)unemployment and inflation are not necessarily inversely related
D)both inflation and unemployment have remained fairly stable over time
E)neither unemployment nor inflation has ever exceeded 10 percent

Question

Quizplus · Accepted Answer

The relationship between unemployment and inflation is not always inverse. In some cases, both can increase or decrease simultaneously, as seen in the stagflation period of the 1970s. Additionally, there have been times when unemployment and inflation have moved in opposite directions, such as during the early 2000s, where inflation remained low while unemployment increased. Therefore, choice C is the best option.

Looking at the Performance of the U