Which of the factors below contributed to the collapse of the Phillips curve in the 1970s?

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Quizplus · Accepted Answer

Adverse supply shocks such as the oil price increases of 1973-1974 contributed the most to the collapse of the Phillips curve, as they led to a situation where both inflation and unemployment were high, which was contrary to the relationship suggested by the Phillips curve. Economic research didn't prove there was no relationship between inflation and unemployment rates, as the Phillips curve still holds in the long run. The U.S. government running triple-digit deficits didn't cause the collapse of the Phillips curve, although it would have resulted in higher inflation. The end of the Vietnam War is not considered to have caused the collapse of the Phillips curve as it occurred in 1973-1974, which is prior to the end of the war.

Which of the Factors Below Contributed to the Collapse of the Phillips