The Origin of the Idea of a Trade-Off Between Inflation

question 8

Multiple Choice

The origin of the idea of a trade-off between inflation and unemployment was a 1958 article by

• A)A)W. Phillips.
• B)Edmund Phelps.
• C)Milton Friedman.
• D)Robert Gordon.

---

Definitions:

Positive Statements

Factual statements that can be tested and validated, describing the world as it is rather than how it should be, typically used in economic analysis.

Value Judgments

Assessments or opinions made based on a set of criteria or moral standards rather than factual evidence alone.

Marginal Costs

The increase or decrease in the total costs incurred by producing one additional unit of a product or service.

Resources Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.