Milton Friedman and Edmund Phelps Contributed Which Insight(s)to Phillips Curve

question 15

Multiple Choice

Milton Friedman and Edmund Phelps contributed which insight(s) to Phillips curve analysis?

• A)that firms and workers care about nominal,not real wages
• B)that wage changes have a one-to-one relationship with changes in expected inflation
• C)that,in the long run,prices are flexible,so unemployment cannot remain above zero
• D)all of the above
• E)none of the above

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Definitions:

Population Parameter

A numerical value that summarizes an aspect of a population, such as its mean, variance, or standard deviation.

α

It represents the significance level in hypothesis testing, usually indicating the probability of rejecting a true null hypothesis or the type I error rate.

Margin of Error

The range of values below and above the sample statistic in a confidence interval, representing uncertainty in the estimate.

Population Mean

The average of all the values in a population.