The curve that shows the relationship between inflation and unemployment when the economy is
At full employment is the
A)aggregate demand curve.
B)short-run Phillips curve.
C)long-run Okun's curve.
D)long-run Phillips curve.
E)aggregate supply curve.

Question

Quizplus · Accepted Answer

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

The Curve That Shows the Relationship Between Inflation and Unemployment