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:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Independent Variable

A variable in an experiment or model that is manipulated or categorized to observe its effect on the dependent variable.

Dependent Variable

In an experimental setting, the variable being tested and measured, which is expected to change as a result of modifications to the independent variable.

Independent Variables

Variables in an experiment that are manipulated to determine if they cause a change in the dependent variable.