Since this model's formulation, it has been modified by the natural-rate hypothesis into an expectations-augmented version.
Since this model's formulation, it has been modified by the natural-rate hypothesis into an expectations-augmented version. Robert Lucas supported the "policy ineffectiveness proposition" by stating that this construct is temporary and that this theory depends on workers being "fooled." Belief in this model was eroded by the (*) stagflation of the 1970s. For 10 points, name this economic graph which purports to show that inflation rises when unemployment drops and vice-versa.
Since this model's formulation, it has been modified by the natural-rate hypothesis into an expectations-augmented version.
{Phillips} Curve