By About 1973,U.S.policymakers Had Learned That

question 156

Multiple Choice

By about 1973,U.S.policymakers had learned that

• A)Friedman and Phelps's analysis of inflation and unemployment had been correct.
• B)the short-run Phillips curve shifts when expectations of inflation change.
• C)there is no long-run trade-off between inflation and unemployment.
• D)All of the above are correct.

---

Definitions:

External Locus

A belief that control over one's life events and outcomes is primarily exercised by external forces or circumstances.

Achievement Tests

Standardized tests designed to measure an individual's level of skill, accomplishment, or knowledge in a specific area.

Locus of Control

The degree to which individuals believe that they have control over the outcome of events in their lives, as opposed to external forces having that control.

Generalized Expectancies

A psychological concept referring to an individual's belief or expectation that their behavior can lead to certain outcomes, regardless of the specific situation.