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:

Agricultural Adjustment Administration

A New Deal agency established in 1933 to improve agricultural prices by controlling production, often through paying farmers not to plant on part of their land.

Sharecroppers

Farmers who rent small plots of land to farm and in return, they give a portion of their crop yield to the landlord as rent.

Landlords

Individuals or entities that rent land, buildings, or housing to tenants for a specified period under a lease agreement.

Black Cabinet

A term for the group of African American advisers to President Franklin D. Roosevelt during his presidency.