The relationship between inflation and unemployment suggested by the experience of the 1960s was supported by the results in the U.S. economy from 1970 to 2015.

Question

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The relationship between inflation and unemployment suggested by the experience of the 1960s, known as the Phillips curve, was challenged by the stagflation of the 1970s, which saw high inflation and high unemployment coexisting. The relationship between inflation and unemployment in the U.S. economy from 1970 to 2015 was more complex and did not consistently support the Phillips curve theory.

The Relationship Between Inflation and Unemployment Suggested by the Experience