The long-run Phillips curve is the relationship between
A)unemployment and the inflation rate at the expected price level.
B)inflation and real GDP at full employment.
C)inflation and the expected inflation rate.
D)inflation and unemployment when the economy is at full employment.
E)unemployment and the price level at full employment.

Question

Quizplus · Accepted Answer

The long-run Phillips curve shows the relationship between inflation and unemployment when the economy is at full employment, indicating that in the long run, there is no trade-off between inflation and unemployment.

The Long-Run Phillips Curve Is the Relationship Between