According to Milton Friedman,the Reason There Are Two Phillips Curves

question 38

Multiple Choice

According to Milton Friedman,the reason there are two Phillips curves is because

• A) the expected inflation rate is always higher than the actual inflation rate.
• B) wages are inflexible.
• C) prices are inflexible.
• D) the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate.
• E) the expected inflation rate is equal to 1 minus the actual inflation rate.