Friedman and Phelps argued
A)that in the long run,monetary growth did not influence those factors that determine the economy's unemployment rate.
B)that the Phillips curve could be exploited in the long run by using monetary,but not fiscal policy.
C)that the short-run Phillips curve was very steep,but not vertical.
D)that there was neither a short-run nor long-run tradeoff between inflation and unemployment.

Question

Quizplus · Accepted Answer

Friedman and Phelps argued that in the long run, monetary policy does not affect the natural rate of unemployment, which is determined by real factors such as technology and preferences, not by monetary factors.

Friedman and Phelps Argued