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What Did Samuelson and Solow Believe About the Phillips Curve

Question 203

Multiple Choice

What did Samuelson and Solow believe about the Phillips curve?


A) It implied that low unemployment was associated with low inflation.
B) It indicated that the aggregate supply and aggregate demand model was incorrect.
C) It illustrated that policymakers face a tradeoff between inflation and unemployment.
D) It demonstrated that fiscal policies were ineffective in reducing unemployment.

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