US Data on Unemployment and Inflation in the 1970s

question 38

Multiple Choice

U.S. data on unemployment and inflation in the 1970s

• A) led economists to place greater emphasis on the Phillips curve as a policy tool.
• B) led to the belief that the Phillips curve may shift over time.
• C) led to a dismissal of the adaptive-expectations theory.
• D) enforced the belief that inflation is constant over time.
• E) led to the belief that the Phillips curve is horizontal over time.

---

Definitions:

Technological Improvement

The process of innovation where better technologies make production more efficient, leading to higher output with the same input.

Per-Worker Production Function

The per-worker production function depicts the relationship between the average product output per employee and the inputs used per employee, highlighting the efficiency of labor in production.

Attainable

Referring to a goal or objective that can be reached or achieved, especially through effort or strategy.

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.