Briefly comment on the predictions of economists Milton Friedman and Edmund Phelps about the ability to exploit a trade-off between inflation and unemployment

What will be an ideal response?

Both Friedman and Phelps (separately) argued that there might be a temporary trade-off between inflation and unemployment. However, both argued that this trade-off could not be exploited permanently. Eventually, expectations of inflation would adjust.

Economics

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When a tax is regressive, as a person's income rises, the tax rate

a. remains unchanged b. decreases c. increases d. becomes the head tax rate e. becomes the excise tax rate

Economics

Direct income transfers account for approximately what percentage of total government spending?

a. 10 percent b. 30 percent c. 50 percent d. 60 percent

Economics