Most economists now agree that the Phillips curve demonstrates that there is

Question

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The majority of economists now believe that the Phillips curve shows an unemployment-inflation trade-off in the short run, but not the long run. In the long run, changes in aggregate demand have no effect on the unemployment rate, but do affect inflation. Therefore, although there may be a short-run trade-off, in the long run there is no stable relationship between unemployment and inflation, as represented by the vertical long-run Phillips curve.

Most Economists Now Agree That the Phillips Curve Demonstrates That