This is the 2nd case of short-term Phillips curve: "When having a supply shock (oil price tăng) the cost of production and price tăng, decrase and work out. So Inflation and unemployment are rising both Show". Due to the sharp increase in oil prices, inflation is showing signs of decline from 5.7% down to 4.4% in 1970 in 1971, 3.2% in 1972 but increased to 6.2% in 1973 and up to 11% in 1974 from 3.2% in 1971 up to 11% in 1974, after 2 years increased by nearly 8%, well over this figure we can see the moment the US economy faced a crisis is not small. The unemployment rate in the US is also showing signs of decline from 5.2% in 1962 down 3.8% in 1964 but began to rise 4.9% from 1970 and to 1974 was 5.6%. Do not like what the theorem, while experiencing supply shocks, both unemployment and inflation are rising
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