The idea that,in the long run,the Phillips curve is vertical,implying no trade-off between inflation and unemployment,is based on the premise that

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The idea that in the long run, the Phillips curve is vertical is based on the premise that inflationary expectations fully adjust to actual inflation. This means that if inflation is higher than expected, people will adjust their expectations and factor in higher inflation in the future. As a result, there will not be a sustained trade-off between inflation and unemployment. In the long run, higher inflation will not lead to lower unemployment as people will demand higher wages to compensate for higher prices, leading to an increase in costs and prices and eventually returning the economy back to its natural rate of unemployment.

The Idea That,in the Long Run,the Phillips Curve Is Vertical,implying