The short- run Phillips curve and the long- run Phillips curve intersect at the ________ and ________.
A)expected inflation rate; the expected employment rate
B)expected inflation rate; the natural unemployment rate
C)natural inflation rate; the expected employment rate
D)expected inflation rate; the expected unemployment rate

Question

Quizplus · Accepted Answer

The short-run Phillips curve and the long-run Phillips curve intersect at the expected inflation rate and the natural unemployment rate, where inflation expectations are realized and unemployment is at its natural level.

The Short- Run Phillips Curve and the Long- Run Phillips