One of the Ideas That Found a Permanent Place in Macroeconomics

question 15

Multiple Choice

One of the ideas that found a permanent place in macroeconomics after Milton Friedman's presidential address to the American Economic Association in 1967 was that

• A) there is not only a temporary tradeoff between inflation and unemployment,but a permanent tradeoff as well.
• B) the tradeoff between unemployment and inflation exists only in the long run,but not in the short run.
• C) people's expectations about economic events affect economic outcomes.
• D) a and b

---

Definitions:

Independent

The state of being not influenced or controlled by others in matters of opinion, conduct, or other choices.

Group Goals

Objectives or outcomes that are intended to be achieved through the collective effort of a group of people.

Culturally Relative

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.

Cognitive Process

A cognitive process is a mental operation that includes thinking, reasoning, decision-making, problem-solving, and imagining, among others.