In the late 1960's, Milton Friedman and Edmund Phelps argued that a tradeoff between inflation and unemployment
a. existed in the long run and the short run.
b. existed in the long run but not the short run.
c. existed in the short run but not the long run.
d. did not exist.
c
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What is expansionary fiscal policy? What is contractionary fiscal policy?
What will be an ideal response?
If Mario's Pizza, Angelo's Pizza, and Bella's Pizza are all competing in the pizza delivery market and Bella's Pizza consistently is the first to change prices, Bella's Pizza might be ________.
A) signaling to the other firms to consistently lower their prices B) signaling to the other firms to consistently raise their prices C) offering to be the price leader D) signaling to the other firms to consistently maintain their prices
Which antitrust law is sometimes called the "Chain Store Act"?
A) Sherman Act B) Clayton Act C) Robinson-Patman Act D) Federal Trade Act
According to the interest-rate-based transmission mechanism for monetary policy, a decrease in the money supply will cause the
A. interest rate to fall, causing planned real investment spending to rise and leading to a decrease in aggregate demand. B. interest rate to rise, causing planned real investment spending to fall and leading to a decrease in aggregate demand. C. interest rate to fall, causing planned real investment spending to rise and leading to an increase in aggregate demand. D. interest rate to rise, causing planned real investment spending to rise and leading to a decrease in aggregate demand.