In the United States during the late 1990s, the unemployment rate fell from previous years and the inflation rate was lower than in previous years.This set of events is best described by saying that the

Question

Quizplus · Accepted Answer

The relationship between unemployment and inflation is depicted by the Phillips curve. A lower unemployment rate and lower inflation rate indicate that the economy moved to a lower point on the short-run Phillips curve, and this is represented by a downward shift of the curve. Thus, choice B is the correct answer. The other options do not accurately represent the given scenario.

In the United States During the Late 1990s, the Unemployment