One of the Ideas That Found a Permanent Place in Macroeconomics

question 15

Multiple Choice

One of the ideas that found a permanent place in macroeconomics after Milton Friedman's presidential address to the American Economic Association in 1967 was that

• A) there is not only a temporary tradeoff between inflation and unemployment,but a permanent tradeoff as well.
• B) the tradeoff between unemployment and inflation exists only in the long run,but not in the short run.
• C) people's expectations about economic events affect economic outcomes.
• D) a and b

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Definitions:

Accurate

Free from errors or mistakes; precise and correct in details.

Cent

The smallest denomination of many currencies, representing 1/100th of the currency's main unit.

Percent

A ratio or fraction calculated out of 100, used to indicate portions of a whole.

Percent

A rate, number, or amount in each hundred; a fraction of a whole expressed in hundredths.