Very few things in economics are resolved theoretically; they're more often improved empirically. Take for example stagflation. Previously, economists assumed

Very few things in economics are resolved theoretically; they're more often improved empirically. Take for example stagflation. Previously, economists assumed a simple linear relationship between inflation and unemployment (Philips curve). That failed to hold in the 1970s. And now, economists assume a simple linear-dynamics relationship between expected inflation and unemployment (augmented Philips curve).