One event that undermined the belief that the Phillips curve represented a structural relationship was
A) the belief of Milton Friedman and Edmund Phelps that expected inflation remains constant.
B) the erratic behavior of unemployment rates and inflation rates during the 1960s.
C) the extended period of time that both unemployment and inflation remained high during the Great Depression.
D) the increase in both the inflation rate and the unemployment rate in the 1970s.
D
You might also like to view...
The methods that governments use to support farmers vary, but they almost always involve some or all the following methods EXCEPT
A) pay farmers a subsidy. B) introduce a price floor. C) isolate the domestic market from global competition. D) tax farmers. E) use price supports.
If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity is
A) 0.25. B) 4. C) 8. D) 16.
The most far-reaching aspect of globalization in the past two decades has been in
a. financial flows. b. export levels. c. import levels. d. human rights advances.
Owners of a firm want the managers to make business decisions which will
A. maximize the value of the firm. B. maximize expected profit in each period of operation. C. maximize the market share of the firm. D. both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.