Critics of the Phillips curve contend that in the long run
A)there is a trade-off between unemployment and inflation.
B)for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.
C)employees are not able to anticipate future rates of inflation,and therefore unemployment can always be reduced by inflating the economy.
D)there is no useful trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate.

Question

Quizplus · Accepted Answer

Critics of the Phillips curve argue that in the long run, workers adjust their expectations of inflation so that any attempts to reduce unemployment below the natural rate will lead to only temporary gains in employment, followed by increases in inflation. Therefore, there is no permanent tradeoff between inflation and unemployment, and policymakers should focus on controlling inflation rather than attempting to reduce unemployment through artificial means.

Critics of the Phillips Curve Contend That in the Long