What did Friedman and Phelps argue about inflation and unemployment?
A)that in the long run, monetary growth did not influence those factors that determine the unemployment rate
B)the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy
C)that the short-run Phillips curve was very steep
D)that there was neither a short-run nor long-run tradeoff between inflation and unemployment

Question

Quizplus · Accepted Answer

Friedman and Phelps argued that in the long run, monetary policy does not affect the natural rate of unemployment, implying that there is no long-term trade-off between inflation and unemployment.

What Did Friedman and Phelps Argue About Inflation and Unemployment