In the United States, through most of the 1990s, the unemployment rate and the inflation rate generally fell. With which phase of the inflation-unemployment relationship does this conform to?

Question

Quizplus · Accepted Answer

The falling unemployment rate and inflation rate in the 1990s conform to the Recovery phase of the inflation-unemployment relationship, as the economy was recovering from the recession of the early 1990s. In this phase, unemployment falls while inflation remains low as the economy grows and expands.

In the United States, Through Most of the 1990s, the Unemployment