What can be concluded from Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve?
A)that there is no long run tradeoff between unemployment and inflation
B)that there is a short run tradeoff between unemployment and inflation
C)that there are two types of Phillips curves
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The expectations-augmented Phillips curve, as proposed by Milton Friedman and Edmund Phelps, concludes that while there is a short-run tradeoff between unemployment and inflation, this tradeoff does not exist in the long run. Additionally, it introduces the concept of the short-run and long-run Phillips curves, effectively suggesting there are two types of Phillips curves.

What Can Be Concluded from Milton Friedman and Edmund Phelps