Which of the following statements is true of the U.S. experience with regards to the Phillips curve hypothesis?
I. Annual observations of inflation and unemployment from 1961 to 2015 seem consistent with a Phillips curve.
II. A Phillips curve relationship best fits observations of inflation and unemployment in the 1960s.
III. The Phillips curve relationship in the inflation and unemployment data began to disintegrate in the 1970s.
A) I only
B) II only
C) III only
D) II and III only

Question

Quizplus · Accepted Answer

Annual observations from 1961 to 2015 seem consistent with a Phillips curve, indicating that there was a relationship between inflation and unemployment. However, this relationship best fits observations from the 1960s, and the Phillips curve began to disintegrate in the 1970s, as seen in the stagflation of the 1970s when high inflation and high unemployment coexisted.

Which of the Following Statements Is True of the U