By about 1973, U.S. policymakers had learned that
a. there is no trade-off between inflation and unemployment in the short run.
b. there is no trade-off between inflation and unemployment in the long run.
c. Friedman's analysis of inflation and unemployment had been correct, and Phelps's analysis of inflation and unemployment had been incorrect.
d. Phelps's analysis of inflation and unemployment had been correct, and Friedman's analysis of inflation and unemployment had been incorrect.
b
You might also like to view...
If an economist were to consult for a major Fortune 500 company, and he reached the conclusion the firm was making zero economic profit,
A) the firm's accounting profit would be greater than zero. B) the firm should go out of business immediately. C) the firm's accounting profits would be lower. D) the economist's numbers were probably wrong because economic profit can never be zero.
Some factors that allow firms to make economic profits are beyond its control. All but one of the following is an uncontrollable factor. Which factor is controllable?
A) chance events B) consumer tastes C) product differentiation D) input prices