What is incorrect about Phillips curve?
1
Philips curve is an economic model hypothesizing a positive correlation between inflation and unemployment.
2
As per Friedman, there is no trade-of between unemployment and inflation in the long-run
3
As per Friedman, economy would always return to its natural rate of unemployment.
4
It is used to guide macroeconomic policy.
5
It is the connective tissue between a Central Bank’s dual mandate goals of maximum employment and price stability.