The table presents the percentage of the labour force that is unemployed and the inflation rate in a country across a five-year period. Which statement about how the Phillips curve theory applies to this country is most strongly supported by the data?
- AThe data are entirely consistent with the theory of the Phillips curve.
- BThe data prove conclusively that the Phillips curve theory does not operate.
- CThe data suggest that no conclusions can be reached about the validity of the Phillips curve theory.
- DThe data suggest that the theory of the Phillips curve is correct, though with time lags.