Which of the Factors Below Contributed to the Collapse of the Phillips

question 137

Multiple Choice

Which of the factors below contributed to the collapse of the Phillips curve in the 1970s?

• A)Economic research proved there was no relationship between inflation and unemployment rates.
• B)The U.S.government was running triple-digit deficits in the 1970s, compounding the normal shifts in aggregate demand.
• C)The 1970s were full of adverse supply shocks such as the oil price increases of 1973-1974.
• D)The aggregate demand curve shifted to the left at the end of the Vietnam War.

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Definitions:

Investment Center

A business unit or segment within an organization that is responsible for its own revenues, expenses, and investments in assets.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in the production process.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and equity.