The Pattern of Employment and Inflation Observed During the 1970s

Multiple Choice

The pattern of employment and inflation observed during the 1970s appeared to confirm the view of Phelps and Friedman that

A) the Phillips curve was upward sloping, not downward sloping as first thought.
B) there was no trade-off between inflation and unemployment in the long run.
C) the expected trade-offs did not occur, meaning that policy to lower unemployment rates would not cause inflation.
D) the aggregate supply curve actually sloped downward because price levels fell when real GDP rose.