The characteristics of the long-run Phillips Curve suggest that the economy is generally stable at its natural rate of unemployment.

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The long-run Phillips Curve shows that there is no trade-off between inflation and unemployment in the long run. Instead, the natural rate of unemployment (the rate at which the economy is stable and not experiencing cyclical unemployment) is determined by structural factors such as demographics, technology, and institutions. Therefore, if the economy is operating at its natural rate of unemployment, it is generally stable in the long run.

The Characteristics of the Long-Run Phillips Curve Suggest That the Economy