If the Phillips curve is usually correct, then an increase inoutput and a corresponding decrease in unemployment would beunusual.
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True
False
The correlation between unemployment and inflation can beexplained by upward pressure on wages and prices when unemploymentis low.
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True
False
According to the natural rate hypothesis (Friedman and Phelps),in the long run, monetary growth did not influence those factorsthat determine the economy’s unemployment rate.
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True
False
A fiscal policy that reduces the amount of cyclical unemploymentwould affect the long run Phillips curve but not the short-runPhillips curve.
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True
False
Many economists during the 1960s believed the implications ofthe Phillips curve, which offered policymakers a menu of possibleeconomic outcomes from which to choose and the choice forexpansionary policy would lead to inflationary pressure but reducedunemployment.
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True
False
