Friedman and Phelps concluded that
A)in the long run the Phillips curve is downward sloping,which is consistent with classical theory.
B)in the long run the Philips curve is downward sloping,which is inconsistent with classical theory.
C)in the long run the Phillips curve is vertical,which is consistent with classical theory.
D)in the long run the Phillips curve is vertical,which is inconsistent with classical theory.

Question

Quizplus · Accepted Answer

Friedman and Phelps argued that in the long run, the Phillips curve is vertical, indicating no trade-off between inflation and unemployment, which aligns with classical economic theory that suggests money is neutral in the long run.

Friedman and Phelps Concluded That