What the natural rate of unemployment is according to Friedman

What the Phillips curve shows — inverse relationship between unemployment and inflation

The Phillips curve illustrates the inverse relationship between unemployment and inflation rates

How does the Fisher Effect describe the relationship between nominal interest rates, real interest rates, and inflation, and what are the implications for monetary policy in a high inflation environment?

Fisher Effect: Nominal rate = Real rate + Inflation; high inflation necessitates higher nominal rates for policy effectiveness

What raising interest rates does — makes borrowing more expensive, slows spending and inflation

Raising interest rates makes borrowing more expensive, slows spending, and reduces inflation

What Friedman meant by 'There is no such thing as a free lunch'

No lender or government can provide unlimited resources without cost

What an inverted yield curve signals — short-term rates exceed long-term, often predicts recession

Inverted yield curve typically signals an impending economic recession

What Keynes argued about government spending during recessions

Keynes argued for increased government spending to stimulate demand during recessions