Milton Friedman and Edmund Phelps contributed which insight(s)to Phillips curve analysis?
A)that inflation is directly related to expectations of future inflation
B)that inflation is negatively related to the unemployment gap
C)that in the long run unemployment will be at the natural rate
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Milton Friedman and Edmund Phelps both contributed to the understanding that in the long run, unemployment will be at the natural rate. They also highlighted the insight that inflation is directly related to expectations of future inflation and negatively related to the unemployment gap. Thus, all of the options mentioned are correct.

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