Along the long- run Phillips curve,
A) actual inflation is less than expected inflation.
B) actual inflation is greater than expected inflation.
C) actual inflation is equal to expected inflation.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

In the long run, the Phillips curve is vertical, indicating that actual inflation equals expected inflation, and unemployment is at its natural rate.

Along the Long- Run Phillips Curve