Which of the following characterizes the relationship between inflation and unemployment in the United States?
I. There have been periods in which a clear tradeoff between inflation and unemployment
Seemed to exist.
II. There have been periods in which inflation and unemployment rose together.
III. There have been periods in which inflation and unemployment fell together.

Question

Quizplus · Accepted Answer

All three statements are true and accurately characterize the relationship between inflation and unemployment in the United States. There have been periods where a clear tradeoff between inflation and unemployment seemed to exist (such as during the 1970s and early 1980s), periods where both rose together (such as during the early 1970s), and periods where both fell together (such as during the mid-1990s). The relationship between inflation and unemployment can be complex and vary depending on various economic factors and policies.

Which of the Following Characterizes the Relationship Between Inflation and Unemployment