In the 1970s, Why Did the Short-Run Phillips Curve Fail

question 72

Essay

In the 1970s, why did the short-run Phillips curve fail to depict the unemployment-inflation trade-off?

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Definitions:

Catatonia

A neuropsychiatric behavioral syndrome marked by an inability to move normally, which can include motor immobility, excessive motor activity, and extreme resistance to suggestion.

Immobility

Immobility refers to the inability or restriction in movement, often implying a physical condition or a psychological state that limits action.

Excessive Movement

refers to an unusually high frequency or intensity of physical activity beyond normal levels, often seen in conditions like hyperactivity disorders.

Schizophrenia

A mental disorder characterized by delusions, hallucinations, disorganized speech and behavior, and impaired cognitive function.