The shift outward in the Phillips curve in the 1970s was caused by the

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The oil supply shocks of the mid-1970s, which led to higher oil prices, and the rise in inflationary expectations caused a shift outward in the Phillips curve, meaning that at any given level of unemployment, there was now a higher level of inflation. This is because higher oil prices increased production costs and reduced the supply of goods and services, leading to higher prices overall. Inflationary expectations also played a role, as people began to anticipate higher prices in the future and adjusted their behavior accordingly.

The Shift Outward in the Phillips Curve in the 1970s