Contrary to what believers in the Phillips curve would say, U.S.economic data from 1955 to 2000 show evidence of:
A)a negative relationship between the unemployment rate and inflation.
B)no short run relationship between the unemployment rate and inflation.
C)increases in both unemployment and inflation rates.
D)a constant rate of inflation, with changing rates of unemployment.
E)a constant rate of unemployment, with changing rates of inflation.

Question

Quizplus · Accepted Answer

During the period from 1955 to 2000, the U.S. experienced instances of stagflation, where both unemployment and inflation rates increased, contradicting the traditional Phillips curve which suggests an inverse relationship between the two.

Contrary to What Believers in the Phillips Curve Would Say