In western Europe since the 1970s
A) the Phillips Curve seems to have shifted to left.
B) the Phillips Curve seems to have been remarkably stable.
C) the Phillips Curve seems to have shifted to the right.
D) the Monetary Policy Reaction Curve seems to have shifted to the left.

Question

Quizplus · Accepted Answer

Since the 1970s, Western Europe has experienced stagflation and other economic changes that have caused the Phillips Curve, which depicts the inverse relationship between inflation and unemployment, to shift to the right, indicating higher inflation rates for a given level of unemployment.

In Western Europe Since the 1970s