The short-run Phillips curve differs from the long-run Phillips curve with regard to the way:
A)expected inflation is treated.
B)wages are treated.
C)prices are treated.
D)unemployment is treated.

Question

Quizplus · Accepted Answer

Expected inflation is treated differently in the short-run and long-run Phillips curves. In the short-run, expected inflation is assumed to be fixed, while in the long-run, expected inflation is assumed to be equal to the actual rate of inflation.

The Short-Run Phillips Curve Differs from the Long-Run Phillips Curve