Author Question: What can be concluded from Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve? ... (Read 49 times)

rl · **on:** Jun 30, 2018

What can be concluded from Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve?

A) that there is no long run tradeoff between unemployment and inflation
B) that there is a short run tradeoff between unemployment and inflation
C) that there are two types of Phillips curves
D) all of the above
E) none of the above

Question 2

Which of the following is not a reason for the Ricardian equivalence theorem to fail to hold?

A) tax distortions
B) people can borrow from the government.
C) finite-lived people.
D) credit market imperfections.