In the late 1960's,Milton Friedman and Edmund Phelps argued that a tradeoff between inflation and unemployment
A)existed in the long run and the short run.
B)existed in the long run but not the short run.
C)existed in the short run but not the long run.
D)did not exist.

Question

Quizplus · Accepted Answer

Friedman and Phelps argued that the tradeoff between inflation and unemployment, known as the Phillips Curve, existed in the short run but not in the long run. They introduced the concept of the natural rate of unemployment, suggesting that in the long run, the economy would return to this natural rate regardless of inflation.

In the Late 1960's,Milton Friedman and Edmund Phelps Argued That