One Reason Why the Phillips Curve "Broke Down" Is

question 201

Multiple Choice

One reason why the Phillips curve "broke down" is

• A)most of the inflation of the 1970s was from the demand side.
• B)most of the inflation of the 1970s was from the supply side.
• C)the inflation of the 1970s was foreseen, unlike the inflation of the 1980s.
• D)the inflation of the 1970s was purely random and could not be explained with economic theory.

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Definitions:

Inelastic Demand

A situation where the demand for a good or service is relatively unaffected by changes in price, indicating that the quantity demanded changes very little with price fluctuations.

Advertiser

An individual or entity that promotes products, services, or ideas through various media to influence consumer behavior and drive sales or engagements.

Elastic

Refers to the responsiveness of demand or supply to changes in price or income.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a percentage.