The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is _{--------------------} which demonstrates that changes in the inflation rate_{--------------------} effect on unemployment. A)vertical; have an B)a downward sloping straight line with a 45 degree slope; have an C)vertical; have no D)horizontal; have no E)an upward sloping straight line with a 45 degree slope; have an

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The long-run Phillips curve is vertical, indicating that in the long run, changes in the inflation rate have no effect on the natural rate of unemployment.

The Long-Run Phillips Curve Applies When the Economy Is at Full