The relationship between inflation and unemployment suggested by the experience of the 1960s was supported by the facts of the 1970s and 1980s.

Question

Quizplus · Accepted Answer

The 1960s suggested a stable inverse relationship between inflation and unemployment (Phillips Curve), but the 1970s and 1980s experienced stagflation, where high inflation and high unemployment occurred simultaneously, challenging this view.

The Relationship Between Inflation and Unemployment Suggested by the Experience