The long- run Phillips curve shows that in the long run, policymakers can
A)lower inflation if they are willing to accept higher unemployment forever.
B)choose the unemployment rate but not the inflation rate.
C)lower unemployment if they are willing to accept more inflation forever.
D)lower inflation without increasing unemployment.

Question

Quizplus · Accepted Answer

In the long run, the Phillips curve is vertical, indicating that there is no trade-off between inflation and unemployment. Therefore, policymakers can lower inflation without affecting the unemployment rate.

The Long- Run Phillips Curve Shows That in the Long