"The Fed is obsessed with inflation. As a result, they have kept unemployment rates excessively high for the past fifteen years." A person with this view most likely believes in:
a constant natural rate of unemployment. a stable, downward-sloping Phillips Curve. a vertical long run aggregate supply curve. perfectly flexible prices and wages.
As a result of what happened in the 1970s, most economists came to believe that macroeconomic policy could, in the long run, control:
both unemployment and inflation. only unemployment, but not inflation. only inflation, but not unemployment. neither inflation nor unemployment.
