Which of the following led to the collapse of the Phillips Curve?

Question

Quizplus · Accepted Answer

The collapse of the Phillips Curve is attributed to the leftward shift of the aggregate supply curve, which was caused by the breakdown of the assumed relationship between inflation and unemployment. This shift resulted in stagflation, which is characterized by high inflation and high unemployment, contrary to the original theory of the Phillips Curve. Therefore, option C, which refers to the leftward shift of the aggregate supply curve, is the correct answer. Options A, B, and D are incorrect as they do not offer a plausible explanation for the collapse of the Phillips Curve.

Which of the Following Led to the Collapse of the Phillips