Multiple Choice
According to Milton Friedman,the reason there are two Phillips curves is because
A) the expected inflation rate is always higher than the actual inflation rate.
B) wages are inflexible.
C) prices are inflexible.
D) the expected inflation rate does not instantaneously adjust to changes in the actual inflation rate.
E) the expected inflation rate is equal to 1 minus the actual inflation rate.
Correct Answer:
Verified
Correct Answer:
Verified
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