In 1980,the combination of inflation and unemployment the U.S.was experiencing
A)resulted from a leftward shift of the short-run Phillips curve.
B)was consistent with feasible inflation-unemployment combinations provided by the Phillips curve of the 1960s.
C)followed two supply shocks that were triggered by the Organization of Petroleum Exporting Countries.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The combination of inflation and unemployment in the US in 1980 was triggered by two supply shocks caused by the Organization of Petroleum Exporting Countries. It was not a result of a leftward shift of the short-run Phillips curve, nor was it consistent with feasible inflation-unemployment combinations provided by the Phillips curve of the 1960s.

In 1980,the Combination of Inflation and Unemployment the U