Both Milton Friedman and Edmund Phelps Argued

question 137

Multiple Choice

Both Milton Friedman and Edmund Phelps argued:

• A)there was no trade-off between inflation and unemployment in the long-run.
• B)the Phillips curve represented a menu of policy choices in the long-run.
• C)permanently higher inflation was the cost of permanently lower unemployment in the long-run.
• D)permanently higher unemployment was the cost of permanently lower inflation in the long-run.

---

Definitions:

Outliers

Observations that lie an abnormal distance from other values in a random sample from a population.

Regression

A statistical method used to determine the strength and character of the relationship between one dependent variable and one or more independent variables.

Foreign Born

Individuals who were born outside of the country in which they currently reside.

Linear Model

A statistical model used to describe the relationship between one or more explanatory variables and a continuous response variable by a linear equation.