What Did Milton Friedman and Edmund Phelps Predict Would Happen

question 2

Essay

What did Milton Friedman and Edmund Phelps predict would happen if policymakers tried to move the economy upward along the Phillips curve? Did the behaviour of the economy in the late 1960s and the 1970s prove them wrong?

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Definitions:

Strategy

A plan of action or policy designed to achieve a major or overall aim.

Novice

A beginner or someone who is new to a particular field or activity.

G Factor

Also known as general intelligence, a construct suggesting a single, broad mental capacity that influences performance across a variety of cognitive tasks.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.