In the 1960s and early 70s, economists believed that the Phillips curve indicated:
A)a menu of macroeconomic choices available to policy makers.
B)that higher levels of employment could be achieved with lower inflation.
C)that higher inflation was the price for more unemployment.
D)all of the above.

Question

In the 1960s and early 70s, economists believed that the Phillips curve indicated:
A)​a menu of macroeconomic choices available to policy makers.
B)​that higher levels of employment could be achieved with lower inflation.
C)​that higher inflation was the price for more unemployment.
D)​all of the above.

Quizplus · Accepted Answer

The Phillips curve indicated a trade-off between inflation and unemployment, suggesting that policy makers could choose between higher inflation with lower unemployment or lower inflation with higher unemployment, essentially presenting a menu of macroeconomic choices.

In the 1960s and Early 70s, Economists Believed That the Phillips