The Phillips curve appeared to fit the data well for the United States in the
A)1960s.
B)1970s.
C)1980s.
D)1990s.

Question

Quizplus · Accepted Answer

The Phillips curve is an economic concept that describes the relationship between inflation and unemployment. In the 1960s, the US experienced a period of low unemployment and high inflation, which appeared to confirm the hypothesis that there was an inverse relationship between the two variables. However, in the 1970s, this relationship broke down due to various factors such as supply shocks and changes in inflation expectations. Therefore, the Phillips curve is said to fit the data well only in the 1960s.

The Phillips Curve Appeared to Fit the Data Well for the United