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frez [133]
3 years ago
9

friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but there shoul

d be a stable relationship between:
Business
1 answer:
Natasha_Volkova [10]3 years ago
6 0

Friedman and Phelps suggested that there should not be a stable relationship between inflation and unemployment, but there should be a stable relationship between: unanticipated inflation and cyclical unemployment.

<h3>What is inflation?</h3>

This is the time in the government or the economy of a nation where they are faced with the rise in the prices of goods and services.

This may cause people to lose their jobs and also cause people to buy less of goods and services.

Read more on inflation here:

brainly.com/question/8149429

#SPJ12

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Government employ two fiscal measures to drive the economy toward stability.  They are taxation and government expenditure.  Depending on the desired outcome and the prevailing circumstances, an increase in taxation reduces the propensity to consume, thus fueling increased savings and investments.  Increased government expenditure galvanizes the economy to grow and the increased expenditure acts as a stimulus to economic activities.  But fiscal policy measures are not used in isolation.  They are complemented by monetary policies by the Federal Reserve.

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