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.
A
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Some argue that tariffs always hurt the imposing country's economic welfare, and are typically designed to shift resources from one sector to another, protected or preferred one, within an economy. Find and discuss a counter example to this argument
What will be an ideal response?
The residual supply curve is the ________ the market ________ that is ________ by other demanders at any given price
A) supply; consumes; also consumed. B) quantity; supplies; consumed. C) quantity; supplies; not consumed. D) quantity; demands; consumed.