What Did Friedman and Phelps Predict Would Happen If Policymakers

question 68

Essay

What did Friedman and Phelps predict would happen if policymakers tried to move the economy upward along the Phillips curve (that is, to increase inflation and reduce unemployment)? Were they right or wrong?

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Definitions:

CSF

Cerebrospinal fluid, a clear body fluid found in the brain and spinal cord, that acts as a cushion and provides basic mechanical and immunological protection to the brain.

Sulcus

A groove or furrow on the surface of the brain, separating adjacent gyri, and involved in increasing the brain's surface area.

Gyrus

A ridge on the cerebral cortex; gyri are the "bumps" that can be seen on the surface of the brain.

Meningitis

An acute inflammation of the protective membranes covering the brain and spinal cord, known collectively as the meninges, which can be caused by infection with viruses, bacteria, or other microorganisms, and in some cases by certain drugs.