Statistical data for the 1970s and 1980s suggest that
A)the Phillips Curve was stable.
B)the Phillips Curve was unstable.
C)low levels of unemployment were consistently associated with high rates of inflation.
D)the inflation rate was highly stable.

Question

Quizplus · Accepted Answer

The Phillips Curve was unstable during the 1970s and 1980s, as the relationship between unemployment and inflation broke down, particularly during periods of stagflation.

Statistical Data for the 1970s and 1980s Suggest That