In the late 1950s and early 1960s,postwar U.S.economic performance led to the formulation of and belief in a
A)vertical Phillips Curve in the short and long runs.
B)vertical Phillips Curve in the long run.
C)horizontal Phillips Curve in the short and long runs.
D)downward-sloping Phillips Curve in the short and long runs.

Question

Quizplus · Accepted Answer

The belief in a downward-sloping Phillips Curve in the short and long runs was prevalent during the late 1950s and early 1960s. This economic theory suggested that there was a trade-off between inflation and unemployment, meaning that lower unemployment could be achieved at the cost of higher inflation, and vice versa.

In the Late 1950s and Early 1960s,postwar U