According to Friedman and Phelps, Which of the Following Statements

question 269

Multiple Choice

According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1950s?

• A) A trade-off between inflation and unemployment as pictured in the Phillips curve existed over the entire time period.
• B) A trade-off between inflation and unemployment as pictured in the Phillips curve existed in the 1970s and 1980s, but not over the entire period.
• C) The relationship between inflation and unemployment is very different from the Phillips curve. A positive relationship is evident rather than an inverse relationship.
• D) There is no clear relationship between unemployment and inflation.

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Definitions:

Fallacies

Deceptive arguments that appear logical, but upon closer analysis, fail to demonstrate their conclusions.

Worthy of Acceptance

Deserving approval or endorsement.

First Condition

An initial requirement or circumstance that must be met for something else to happen or be considered.