When the Phillips curve was first used in economics,many economists believed that
A)the government could fine-tune the economy and generate both the natural rate of unemployment and zero inflation.
B)the government could fine-tune the economy and pick the most preferred combination of unemployment and inflation.
C)low unemployment could be obtained only by generating rapidly increasing inflation.
D)there was no relationship between inflation and unemployment,at least in the long run.

Question

Quizplus · Accepted Answer

Initially, the Phillips curve suggested a trade-off between inflation and unemployment, implying that policymakers could choose a preferred combination of the two.

When the Phillips Curve Was First Used in Economics,many Economists