In 1968, Economist Milton Friedman Published a Paper That Was

question 165

Multiple Choice

In 1968, economist Milton Friedman published a paper that was critical of the Phillips curve. On what grounds did Friedman criticize the Phillips curve?

• A)It seemed to work for wages but not for inflation.
• B)Monetary policy was ineffective in combating inflation.
• C)The Phillips curve did not apply in the long run.
• D)Phillips had made errors in collecting his data.

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Definitions:

Total Revenue

The total amount of money a company receives from its sales of goods or services, calculated before any expenses are subtracted.

Total Output

The total quantity of goods and services produced in an economy over a specific period of time.

Total Cost

The sum of fixed and variable costs incurred by a business in the production of goods or services.

Marginal Physical Product

The additional output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.