Phillips curves are
A) easy to find in the data, and stable.
B) hard to find in the data and stable.
C) easy to find in the data and unstable.
D) obvious from the data.
E) hard to find in the data and unstable.

Question

Quizplus · Accepted Answer

Phillips curves are hard to find in the data and unstable. The relationship between inflation and unemployment is subject to changes in the economy, such as changes in inflation expectations, supply shocks, and structural changes in labor markets. Additionally, different countries and time periods may have different Phillips curves due to differences in economic conditions and institutions. Therefore, while the concept of a Phillips curve is useful for understanding the relationship between inflation and unemployment, its empirical validity and stability are subject to debate and uncertainty.

Phillips Curves Are