Which of the following is NOT a reason that the Great Recession of 2007 to 2009 seemed consistent with the simple Phillips curve?
A) A reduction in inflation stemmed from reduction in aggregate demand.
B) Inflation expectations were stable.
C) The rise in unemployment was predictable.
D) The natural rate of unemployment was fairly stable.

Question

Quizplus · Accepted Answer

The rise in unemployment was not predictable, as the Great Recession was a severe and unexpected economic downturn, which led to a significant and rapid increase in unemployment rates.

Which of the Following Is NOT a Reason That the Great