The expectations augmented Phillips curve was the Work of which group of economists ?
Correct answer: C. Monetarists
- A. New classical economists
- B. Keynesian.
- C. Monetarists
- D. Marxists.
Explanation
Monetarists, especially Milton Friedman, added expected inflation to the Phillips-curve analysis and argued that the unemployment-inflation trade-off is only temporary. Once expectations adjust, unemployment returns toward its natural rate.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
The classical model of macroeconomics assumes ?
If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?
The view of the Phillips curve that prevailed in the 1960s implied that policies that ?
The Phillips curve is a graph showing the relationship between ?
Which school of economic thought suggested that one possible cause of inflation was a 'push' from the cost side ?