The relationship between inflation and unemployment suggested by the experience of the
J1960s was supported by the results in the U.S. economy from 1970 to 2010.

Question

Quizplus · Accepted Answer

The relationship between inflation and unemployment, known as the Phillips curve, broke down in the U.S. economy after the 1970s. In the 1970s, the U.S. experienced high levels of both inflation and unemployment, with the phenomenon known as stagflation. This contradicted the traditional relationship between inflation and unemployment, leading some economists to question the validity of the Phillips curve. The breakdown of the Phillips curve relationship continued in the following decades, with periods of low inflation and high unemployment (such as the early 1980s) and periods of low unemployment and low inflation (such as the late 1990s).

The Relationship Between Inflation and Unemployment Suggested by the Experience