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:

Motives

The reasons or driving forces behind individuals' actions or decisions.

Social Accountability

The responsibility of an organization or individual to consider and report on the social impacts and ethical implications of its activities.

Public Bodies

Organizations that are part of the government or perform public functions, such as local councils, government departments, and public corporations.

Kantian Approach

A philosophical theory based on the works of Immanuel Kant, emphasizing moral principles and the importance of the intention behind actions rather than their consequences.