According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1950s?
A) A trade-off between inflation and unemployment as pictured in the Phillips curve existed over the entire time period.
B) A trade-off between inflation and unemployment as pictured in the Phillips curve existed in the 1970s and 1980s, but not over the entire period.
C) The relationship between inflation and unemployment is very different from the Phillips curve. A positive relationship is evident rather than an inverse relationship.
D) There is no clear relationship between unemployment and inflation.
D
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In a _____, the state owns all means of production
A. mixed economy B. planned economy C. market economy D. totalitarian state
When the Fed sells government securities to a bank, how are the Fed's assets affected?
A) The amount of the Fed's government securities decreases. B) The amount of the Fed's government securities increases. C) The amount of reserves held at the Fed increases. D) The amount of reserves held at the Fed decreases.
Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________
A) decreases; they both benefit B) increases; they both benefit C) decreases; neither benefit D) increases; only one party benefits
The production possibilities frontier represents
A) all combinations of consumption and leisure for fixed output. B) all equally affordable combinations of consumption and leisure for a given wage. C) all technologically feasible combinations of consumption and leisure. D) all equally liked combinations of consumption and leisure.