Although the tenth principle of economics is controversial, what do most economists believe?
A) Society faces a tradeoff between unemployment and inflation in the short run only.
B) Society faces a tradeoff between unemployment and inflation in the long run only.
C) No tradeoff exists between unemployment and inflation.
D) Society faces a continuous tradeoff between unemployment and inflation.

Question

Quizplus · Accepted Answer

Most economists believe that in the short run, a tradeoff exists between unemployment and inflation, often illustrated by the Phillips curve. This principle suggests that policies aimed at reducing unemployment can lead to higher inflation and vice versa, but this tradeoff is primarily observed in the short term.

Although the Tenth Principle of Economics Is Controversial, What Do