Both classicals and Keynesians agree that policymakers
A)can exploit the Phillips curve in the short run.
B)cannot exploit the Phillips curve in the short run.
C)can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
D)cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.

Question

Quizplus · Accepted Answer

Both classicals and Keynesians agree that in the long run, attempts to keep unemployment below the natural rate by running high inflation will lead to accelerating inflation without reducing unemployment permanently.

Both Classicals and Keynesians Agree That Policymakers