When inflation has not been very persistent,as was the case in the United States before the mid-1960s,we can expect that

Question

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When inflation has not been very persistent, as was the case in the United States before the mid-1960s, expectations about future price levels tend to be based on recent experience (A), the current inflation rate is less influenced by past inflation rates (B), and there is often observed a trade-off between unemployment and inflation, known as the Phillips curve (C). Therefore, all of the statements A, B, and C are correct in this context.

When Inflation Has Not Been Very Persistent,as Was the Case