The United States economy behaved according to the simple Phillips curve from _____ and did not follow that pattern from:

Question

Quizplus · Accepted Answer

The simple Phillips curve, which posits an inverse relationship between unemployment and inflation, seemed to hold true during the 1960s in the United States. However, from the 1970s onwards, this relationship broke down, particularly during periods of stagflation, where high inflation and high unemployment occurred simultaneously, contradicting the simple Phillips curve model.

The United States Economy Behaved According to the Simple Phillips