Along the long-run Phillips curve the unemployment rate_{--------------------} and the inflation rate_{--------------------} . A)is equal to the natural unemployment rate; can be any value B)can be any value; can be any value C)can be any value; is equal to the natural inflation rate D)is equal to the natural unemployment rate; is equal to the natural inflation rate E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

In the long run, the Phillips curve is vertical at the natural rate of unemployment, indicating that unemployment is equal to the natural rate, while inflation can be any value depending on monetary policy and other factors.

Along the Long-Run Phillips Curve the Unemployment Rate-------------------- and the Inflation

Along the Long-Run Phillips Curve the Unemployment Rate_{--------------------} and the Inflation