Which of the following assumptions indicates that there is no trade-off between inflation and unemployment?

Question

Quizplus · Accepted Answer

A vertical Phillips Curve suggests that there is no trade-off between inflation and unemployment, meaning that lower unemployment cannot be achieved by accepting higher levels of inflation or vice versa. Therefore, the absence of a trade-off between inflation and unemployment is best represented by a vertical Phillips Curve. The other options (A, C, and D) do not necessarily suggest the absence of a trade-off between inflation and unemployment.

Which of the Following Assumptions Indicates That There Is No