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During the 1960s, the Phillips Curve Relationship Was Relatively Stable

question 60

Essay

During the 1960s, the Phillips curve relationship was relatively stable. During the 1970s, the Phillips curve relationship was unstable. Based on your understanding of the aggregate supply and aggregate demand model, explain why this was so.


Definitions:

Base Year

A specific year or period used as a reference point for comparison purposes in financial analysis.

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