What did Friedman and Phelps argue about the relationship between inflation and unemployment?
A) The inflation rate is related to unemployment in the long-run.
B) The inflation rate is unrelated to unemployment in the long-run.
C) The inflation rate is related to unemployment in the short-run.
D) The inflation rate is unrelated to unemployment in the short-run.

Question

Quizplus · Accepted Answer

Friedman and Phelps argued that in the long run, the inflation rate is unrelated to unemployment, as the economy returns to the natural rate of unemployment regardless of inflation.

What Did Friedman and Phelps Argue About the Relationship Between