Economists Milton Friedman and E

question 169

Multiple Choice

Economists Milton Friedman and E.S. Phelps suggested that the apparent trade-off suggested by the Phillips curve could not be exploited by policy makers, because

• A) economic participants routinely incorporate changes in the inflation rate into their expectations.
• B) economic participants are not rational, and therefore act unpredictably to any policy change.
• C) unemployment levels and the inflation rate have a clear, positive relationship.
• D) unemployment levels and the inflation rate have a negative (inverse) relationship.

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Definitions:

Resamples

Resamples are subsets of data drawn from an original dataset, often with replacement, used in bootstrap methods to estimate the variability or distribution of a statistic.

Bootstrapping

A statistical method that involves resampling with replacement from a dataset to estimate the distribution of a statistic.

Original Data Set

The initial collection of data acquired before any manipulation, cleaning, or analysis has been conducted.

New Values

Refers to data points that have been introduced into a dataset or calculation, differing from previous values.