During the 1960s in the United States, policymakers believed that if they accepted minor increases in inflation, they could keep unemployment low.

Question

Quizplus · Accepted Answer

This belief was known as the Phillips Curve, and it was widely accepted by policymakers during this time. However, it was later found that the relationship between inflation and unemployment was not as strong as previously thought, and the Phillips Curve was no longer considered a reliable economic model.

During the 1960s in the United States, Policymakers Believed That