Practice question · Match the pairs
Match each 1970s-80s concept to its meaning.
- Stagflation
- Volcker shock
- Phillips curve
- Supply-side economics
- Focus on production incentives over demand management
- Stagnation plus inflation at the same time
- The inverse inflation-unemployment trade-off
- Extreme rate hikes to crush inflation expectations
Hints
- Separate the shock from the symptom from the cure.
- One term names the simultaneous stagnation and price rises.
Show the answer
- Stagflation → Stagnation plus inflation at the same time
- Volcker shock → Extreme rate hikes to crush inflation expectations
- Phillips curve → The inverse inflation-unemployment trade-off
- Supply-side economics → Focus on production incentives over demand management
Why
Four concepts that defined the end of one era and the beginning of another.
Practise Oil Shocks and Stagflation
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