What Did Milton Friedman and E

question 146

Multiple Choice

What did Milton Friedman and E.S. Phelps argue with respect to the Phillips Curve?

• A) The Phillips Curve could accurately guide activist policy makers over the long run.
• B) The inverse relationship between unemployment and inflation only holds in the long run. In the short run, unemployment and inflation are positively related.
• C) Economic participants would soon understand activist policymakers' strategy and revise their expectations, making discretionary efforts to fine-tune the economy ineffective.
• D) The inflation rate will consistently be 2 percentage points below the unemployment rate.

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Definitions:

Multidisciplinary Team

A group composed of members from different disciplines or professions working together towards a common goal, especially in health and social care settings.

Social Action Group

A collective of individuals or organizations that come together to address social issues or promote social change through collective action.

Deliberative Bodies

Organizations or groups that engage in thorough discussion and consideration of issues before making decisions.

Consensus

A general agreement among all members of a group or community, often reached through negotiation and discussion.