Consider the following three figures, which show the Phillips curve relationship for the 1970s, 1980s, and 1990s. The output gap is on the x-axis and the change in inflation, $\Delta$ $\pi$, is on the y-axis. Explain what each of these Phillips curves tells us about each of the three decades. In which period would fighting inflation be the most difficult?Figure 9.9: Phillips Curve Relationship, 1970s
Figure 9.10: Phillips Curve Relationship, 1980s
Figure 9.11: Phillips Curve Relationship, 1990s

Question

Consider the following three figures, which show the Phillips curve relationship for the 1970s, 1980s, and 1990s. The output gap is on the x-axis and the change in inflation, $\Delta$ $\pi$, is on the y-axis. Explain what each of these Phillips curves tells us about each of the three decades. In which period would fighting inflation be the most difficult?Figure 9.9: Phillips Curve Relationship, 1970s  
Figure 9.10: Phillips Curve Relationship, 1980s  
Figure 9.11: Phillips Curve Relationship, 1990s

Quizplus · Accepted Answer

The Answer of Consider the following three figures, which show the Phillips curve relationship for the 1970s, 1980s, and 1990s. The output gap is on the x-axis and the change in inflation, $\Delta$ $\pi$, is on the y-axis. Explain what each of these Phillips curves tells us about each of the three decades. In which period would fighting inflation be the most difficult?Figure 9.9: Phillips Curve Relationship, 1970s  
Figure 9.10: Phillips Curve Relationship, 1980s  
Figure 9.11: Phillips Curve Relationship, 1990s

Consider the Following Three Figures, Which Show the Phillips Curve Δ\DeltaΔ

Consider the Following Three Figures, Which Show the Phillips Curve $\Delta$