Milton Friedman and Edmund Phelps Contributed Which Insight(s)to Phillips Curve

question 83

Multiple Choice

Milton Friedman and Edmund Phelps contributed which insight(s) to Phillips curve analysis?

• A)that a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved
• B)that,in the long run,sticky wages and staggered prices prevent unemployment from remaining low
• C)that firms and workers care about real wages
• D)all of the above
• E)none of the above

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Definitions:

Classical Economist

An economist adhering to a school of thought originating in the late 18th and early 19th centuries, focusing on free markets, the role of self-interest, and the importance of limiting government intervention in the economy.

Interest Rates

A lender's charge to a borrower, expressed as a proportion of the principal, for accessing assets.

Supply and Demand

Economic model of price determination in a market, stating that the price of a good or service varies directly with its demand and inversely with its supply.

Government

An organization or system that governs and implements decisions in a community, country, or society through the establishment of rules and the management of public services.