The analysis of Friedman and Phelps argues that an expected change in inflation has no impact on the unemployment rate.

Name: The analysis of Friedman and Phelps argues that an expected change in inflation has no impact on the unemployment rate.
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Friedman and Phelps argued that only unexpected inflation could temporarily lower unemployment, while expected inflation would be quickly incorporated into wage contracts and price setting, leaving the natural rate of unemployment unchanged.

The Analysis of Friedman and Phelps Argues That an Expected