Friedman and Phelps Argued

question 54

Multiple Choice

Friedman and Phelps argued

• A)that in the long run,monetary growth did not influence those factors that determine the economy's 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 not vertical.
• D)that there was neither a short-run nor long-run tradeoff between inflation and unemployment.

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Definitions:

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The amount received by a company over and above the par value of its shares when it issues them to shareholders.

Revaluation Surplus

The increase in value of an asset, recognized in the equity section of a company's balance sheet, when its fair market value is higher than its net book value.

Contributed Capital

Funds raised by a company through the issuance of shares to investors, also known as share capital or paid-in capital.

Share Premium

The amount received by a company over and above the par value of its shares when issuing new shares; also known as additional paid-in capital.