In the United States during the 1970s, the unemployment rate rose from previous years, and the inflation rate increased rapidly. This set of events is best described by saying that the

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The simultaneous rise in unemployment and inflation during the 1970s in the U.S. is indicative of stagflation, which is best explained by an upward shift in the short-run Phillips curve. This shift reflects higher inflation at each level of unemployment.

In the United States During the 1970s, the Unemployment Rate