What Did Friedman and Phelps Argue About Inflation and Unemployment

question 169

Multiple Choice

What did Friedman and Phelps argue about inflation and unemployment?

• A) that in the long run, monetary growth did not influence those factors that determine the unemployment rate
• B) that the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy
• C) that the short-run Phillips curve was very steep but the long-run curve was very flat
• D) that there was neither a short-run nor long-run tradeoff between inflation and unemployment

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Definitions:

Charged with Air

Typically refers to pneumatic systems or equipment that has been pressurized with air for operation or use.

Trolley Valve

A valve used in air brake systems on trucks and trailers, allowing the driver to control the trailer brakes independently.

Service Application Valves

Valves used in the maintenance and repair process of various systems, allowing for the control or direction of flow during service.

Spike

A sudden surge in hydraulic pressure or electrical voltage. Also a slang term meaning the tractor steering column mounted, trailer service brake valve.