U.S. data on unemployment and inflation in the 1970s
A) led economists to place greater emphasis on the Phillips curve as a policy tool.
B) led to the belief that the Phillips curve may shift over time.
C) led to a dismissal of the adaptive-expectations theory.
D) enforced the belief that inflation is constant over time.
E) led to the belief that the Phillips curve is horizontal over time.
Correct Answer:
Verified
Q7: Figure 16.1 Q8: When workers expect less inflation than actually Q9: The key feature that makes the short-run Q10: If the short-run Phillips curve shifts to Q11: The Phillips curve suggests a tradeoff between Q13: According to the long-run Phillips curve, which Q14: The reservation wage is the Q15: Unexpected inflation can affect the unemployment rate Q16: Figure 16.1 Q17: In the short run, expansionary monetary policy
A)
A) nominal wage
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