In the long run,
A)attempts to "fine-tune" the economy cause the rate of unemployment to accelerate.
B)there is no inflation-unemployment trade-off.
C)there is an inflation-unemployment trade-off, and the terms of that trade-off have worsened in recent years.
D)there is an inflation-unemployment trade-off, but the terms of that trade-off have improved in recent years.

Question

Quizplus · Accepted Answer

In the long run, the Phillips curve suggests that there is no trade-off between inflation and unemployment, as the economy tends to return to the natural rate of unemployment regardless of the inflation rate.

In the Long Run