In the late 1960s, which of the following was published by economist Edmund Phelps?
A) a paper that argued that there was no long-run tradeoff between inflation and unemployment
B) a paper that disproved Friedman's claim that monetary policy was ineffective in controlling inflation
C) a paper that showed the optimal point on the Phillips curve was at an unemployment rate of 5 percent and an inflation rate of 2 percent
D) a paper that argued that the Phillips curve was stable and that it would not shift

Question

Quizplus · Accepted Answer

In the late 1960s, economist Edmund Phelps published a paper titled "Phillips Curves, Expectations of Inflation and Optimal Unemployment over Time," which argued that there was no long-run tradeoff between inflation and unemployment. This challenged the prevailing economic consensus at the time and contributed to the development of the natural rate hypothesis. Therefore, choice A is the best answer.

In the Late 1960s, Which of the Following Was Published