In the United States during the 1970s, the unemployment rate rose from previous years, and the inflation rate increased rapidly.This set of events is best described by saying that the

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The rise in both unemployment and inflation during the 1970s suggests that the short-run Phillips curve shifted upward. This means that the economy has experienced a higher level of inflation for any given level of unemployment. This was due to a combination of factors, including high oil prices, inconsistent monetary policy, and supply shocks.

In the United States During the 1970s, the Unemployment Rate