Milton Friedman and Edmund Phelps contributed which insight(s)to Phillips curve analysis?
A)that a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved
B)that,in the long run,sticky wages and staggered prices prevent unemployment from remaining low
C)that firms and workers care about real wages
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Friedman and Phelps contributed the insight that firms and workers care about real wages, not just nominal wages, to Phillips curve analysis. This challenged the earlier view that there was a stable, long-term trade-off between inflation and unemployment.

Milton Friedman and Edmund Phelps Contributed Which Insight(s)to Phillips Curve