Data from the U.S. economy in the 1960s and 1970s support a long-run tradeoff between inflation and unemployment, whereas data from the 1980s and 1990s do not support such a tradeoff.

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The Phillips Curve initially suggested a trade-off between inflation and unemployment in the short run, but the experiences of the 1970s with stagflation (high inflation and high unemployment) challenged this view. By the 1980s and 1990s, economists generally accepted that the trade-off does not hold in the long run, aligning with the natural rate hypothesis.