Current thinking on the Phillips curve suggests that it would be best for policy makers to:
A)focus on controlling unemployment.
B)stimulate permanent shifts in aggregate supply.
C)focus on controlling inflation.
D)stimulate permanent shifts in aggregate demand.
E)develop a two-pronged policy to control both unemployment and inflation.

Question

Quizplus · Accepted Answer

Current thinking on the Phillips curve suggests that there is no long-term trade-off between inflation and unemployment, so policymakers should focus on controlling inflation to ensure economic stability.

Current Thinking on the Phillips Curve Suggests That It Would