Which of the Following Factors Contributed to the Collapse of the Phillips

Multiple Choice

Which of the following factors contributed to the collapse of the Phillips curve in the 1970s?

A) Economic research proved there was no relationship between inflation and unemployment rates.
B) The U.S.government was running triple-digit deficits in the 1970s, compounding the normal shifts in aggregate demand.
C) The 1970s were full of adverse supply shocks such as the oil price increases of 1973-1974.
D) The aggregate demand curve shifted to the left at the end of the Vietnam War.