In the 1960s,the Phillips curve was ________.
A)a very popular explanation for inflation fluctuations
B)consistent with a clear negative relationship between inflation and unemployment
C)suggestive of a permanent trade off between inflation and unemployment
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The Phillips curve was a popular explanation for inflation fluctuations in the 1960s, and it suggested a negative relationship between inflation and unemployment that seemed consistent. It also implied a trade-off between the two variables, which was perceived as a policy-relevant finding at the time. All these characteristics describe the Phillips curve in the 1960s, making D the correct answer.

In the 1960s,the Phillips Curve Was ________