A graph titled Change in U S Unemployment and Inflation from 1971 to 2001 has the year on the x-axis and percentage change on th
e y-axis, from 0 to 8 percent. From 1971 to 1976, both unemployment rate and inflation increased. From 1981 to 2001, both decreased. According to the graph, 1971 to 1976 was a period of stagflation due to
rising unemployment and inflation.
falling unemployment and inflation.
rising unemployment and falling inflation.
falling unemployment and rising inflation.
This is true mostly because it easier to control internal elements compared to external factors. The increase in control makes change easier. For example, think about how a company would respond to a layoff compared to how they would respond to a natural disaster that destroyed their headquarters.