This study tests the relationship between certain economic scenarios and the state of the economy in regard to inflation and recession. Using data gathered from government publications, the economy was divided into periods of inflation, recession, and recession recovery. These periods were regressed against variables representing four schools of economic thought: monetarist scenario, structural scenario, power scenario, and micro, or supply side scenario. This study concludes that because of the complex nature of the economy, all representative variables have both positive and negative effects on the economy and no one scenario holds the key to economic stability.