In the monetarist view,the long-run Phillips curve is
A)horizontal.
B)downward sloping.
C)downward sloping but steeper than the short-run curve.
D)downward sloping but flatter than the short-run curve.
E)none of the above.

Question

Quizplus · Accepted Answer

In the monetarist view, the long-run Phillips curve is vertical, not horizontal, downward sloping, or any variation thereof. This reflects the belief that in the long run, there is no trade-off between inflation and unemployment, meaning that the economy will return to its natural rate of unemployment regardless of the inflation rate.

In the Monetarist View,the Long-Run Phillips Curve Is