Which hypothesis is supported by the economic experience of Canada during the late 1960s and early 1970s?
A) Inflation and unemployment are negatively correlated.
B) Inflation and unemployment are related in the short run.
C) Inflation and unemployment are related in the long run.
D) Inflation and unemployment are positively correlated.

Question

Quizplus · Accepted Answer

During the late 1960s and early 1970s, Canada experienced stagflation, a period characterized by high inflation and high unemployment, which supports the idea that inflation and unemployment can be related in the short run, as described by the Phillips Curve.

Which Hypothesis Is Supported by the Economic Experience of Canada