Friedman and Phelps Argued

question 54

Multiple Choice

Friedman and Phelps argued

• A)that in the long run,monetary growth did not influence those factors that determine the economy's unemployment rate.
• B)that the Phillips curve could be exploited in the long run by using monetary,but not fiscal policy.
• C)that the short-run Phillips curve was very steep,but not vertical.
• D)that there was neither a short-run nor long-run tradeoff between inflation and unemployment.

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Definitions:

Liabilities

Liabilities represent financial obligations or debts that a company owes to external parties, such as loans and accounts payable.

Fixed Assets

Tangible assets, such as buildings, machinery, and equipment, used in the operations of a business that are not intended for sale.

Insurance Policy

A contract between an insurer and policyholder specifying the terms for the payment of claims to the insured or their beneficiaries in the event of a covered loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate accounting period.