Author Question: In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy ... (Read 81 times)

vicotolentino · **on:** Jun 30, 2018

In the early 1960s, the discovery of the Phillips curve relationship caused economists and policy makers to think that they understood the trade-offs between:
a. aggregate supply and aggregate demand.
b. interest rate and investment.
c. inflation and unemployment.
d. monetary and fiscal policy.
e. rule-making and discretionary policy.

Question 2

The initial Phillips curve relationship implied that the opportunity cost of _____ was higher _____.
a. reducing unemployment; inflation
b. increasing unemployment; inflation
c. decreasing employment; interest rate
d. increasing employment; deflation
e. increasing employment; interest rate