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

question 15

Multiple Choice

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

• A)that firms and workers care about nominal,not real wages
• B)that wage changes have a one-to-one relationship with changes in expected inflation
• C)that,in the long run,prices are flexible,so unemployment cannot remain above zero
• D)all of the above
• E)none of the above

---

Definitions:

Absorption Costing

This accounting technique aggregates the total manufacturing costs—direct materials, direct labor, and both variable and fixed overheads—into the calculation of a product’s price.

Cost-plus Pricing

A pricing strategy where a fixed percentage or a fixed amount is added to the cost price to determine the selling price.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of investment.

Markup

The amount added to the cost of a product to cover expenses and generate profit, often expressed as a percentage of the cost.