Which of the following factors contributed to the collapse of the Phillips curve in the 1970s?
A) Economic research proved there was no relationship between inflation and unemployment rates.
B) The U.S.government was running triple-digit deficits in the 1970s, compounding the normal shifts in aggregate demand.
C) The 1970s were full of adverse supply shocks such as the oil price increases of 1973-1974.
D) The aggregate demand curve shifted to the left at the end of the Vietnam War.
Correct Answer:
Verified
Q90: Figure 33-4 Q91: If the aggregate supply curve is vertical, Q92: At the natural rate of unemployment, the Q93: One piece of evidence that business fluctuations Q94: If the fluctuations in the economy's real
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents