Question

A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with​ ________ had lower inflation rates than countries with​ ________.
a. higher unemployment rates
b. lower unemployment rates
c. higher inflation rates
d. lower inflation rate

Answer 1

Answer:

The study carried out by Alberto Alesina and Lawrence Summers was about the role of Independence central banks, not about unemployment.

A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with central banks that have high independence had lower inflation rates than countries with central banks that have low independence.

William Phillips studied the correlation between unemployment and inflation rate. He concluded that high inflation rate led to low unemployment, and vice versa.