(Answered) Milton Freeman and Edmond Phelps rejected the Phillips curveMilton Freeman and Edmond Phelps…

➤ How did expectations change the Phillips curve explanation?
They incorporated expectations into the Phillips curve so the relationship depends on expected inflation. With adaptive expectations, agents update based on past inflation; with rational expectations, they forecast policy. If inflation matches expectations, unemployment stays at its natural rate. Only unexpected inflation temporarily lowers unemployment until expectations adjust and the curve shifts.