The Friedman-Phelps Analysis Shows That a Negative Relationship Between Inflation

question 24

Multiple Choice

The Friedman-Phelps analysis shows that a negative relationship between inflation and unemployment holds

• A)even when expected inflation changes.
• B)even when the natural rate of unemployment changes.
• C)even if both the expected inflation rate and the natural rate of unemployment change.
• D)as long as the expected inflation rate and the natural rate of unemployment are approximately constant.