The Stagflation Experienced by Many of the World's Industrialized Economies

question 56

Multiple Choice

The stagflation experienced by many of the world's industrialized economies during the late 1960s and the 1970s showed us that

• A)the Phillips curve accurately represents the trade-off between unemployment and inflation.
• B)both inflation and economic expansion could exist simultaneously.
• C)the relationship between unemployment and inflation was not as clear-cut as presented on the Phillips curve.
• D)it is possible to alleviate economic stagflation through the government discretionary fiscal policy.

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