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What Did Friedman and Phelps Predict Would Happen If Policymakers

question 68

Essay

What did Friedman and Phelps predict would happen if policymakers tried to move the economy upward along the Phillips curve (that is, to increase inflation and reduce unemployment)? Were they right or wrong?


Definitions:

Latent Function

A term in sociology that refers to the unrecognized or unintended consequences of any social process.

Youth Culture

The way youngsters live, and the norms, values, and practices they share, distinct from adult society and often characterized by music, fashion, language, etc.

Parents' Values

The beliefs and moral principles that parents consider important and seek to instill in their children.

Educational Achievement

The attainment of educational milestones or qualifications, often measured by standardized tests or degree completion.

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