Which of the Following Events Caused the Original Phillips Curve

question 3

Multiple Choice

Which of the following events caused the original Phillips curve to fail?

• A)World War II.
• B)the first oil price shock in 1973
• C)the stock market crash in 1987
• D)the 1982 recession

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Definitions:

Indifference Curves

Graphical representations used in economics to show combinations of two goods that provide a consumer with the same level of satisfaction.

Utility Possibilities Frontier

A graphical representation that shows the maximum amount of two goods that an economy can produce using all its resources efficiently, given the technology.

Contract Curve

In an Edgeworth box diagram, it represents the set of optimal distribution points for two traders based on their preferences.

Efficient Input Use

Utilization of inputs in a manner that maximizes the output or minimizes the cost under given technology and constraints.