Label each of the following statements true, false, or uncertain. Explain briefly.

a. The original Phillips curve is the negative relation between unemployment and inflation that was first observed in the United Kingdom.

b. The original Phillips curve relation has proven to be very stable across countries and over time.

c. For some periods of history, inflation has been very persistent between adjacent years. In other periods of history, this year’s inflation has been a poor predictor of next year’s inflation.

d. Policy makers can only exploit the inflation–unemployment trade-off temporarily.

e. Expected inflation always equals actual inflation.

f. In the late 1960s, the economists Milton Friedman and Edmund Phelps said that policy makers could achieve as low a rate of unemployment as they wanted.

g. If people assume that inflation will be the same as last year’s inflation, the Phillips curve relation will be a relation between the change in the inflation rate and the unemployment rate.

h. The natural rate of unemployment is constant over time within a country.

i. The natural rate of unemployment is the same in all countries.

j. Deflation means that the rate of inflation is negative.

k. When inflation expectations are anchored, the Phillips curve relation is a relation between the change in the inflation rate and the unemployment rate.

l. If inflation expectations are anchored, real wages will be constant since actual inflation will equal expected inflation.