Both Milton Friedman and Edmund Phelps Argued That If the Long-Run

question 38

Multiple Choice

Both Milton Friedman and Edmund Phelps argued that if the long-run aggregate supply curve was vertical, then the slope of the long-run Phillips curve must be:

• A)negative.
• B)positive.
• C)infinite.
• D)zero.

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Definitions:

Cash Flow Stream

A series of cash inflows and outflows over a period of time, often used in financial analysis and investment decisions.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Present Value

The present worth of a future amount of money or series of cash flows when calculated with a certain rate of return.

Withdrawals

The process of removing funds from an account, typically from a bank or investment account.