The long-run Phillips curve is the counterpart to the

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The long-run Phillips curve shows the relationship between unemployment and inflation over the long run when wages and prices have fully adjusted to changes in the economy. It is the counterpart to the long-run aggregate supply curve as both curves depict the economy's natural rate of output and inflation. The short-run Phillips curve shows the relationship between unemployment and inflation over the short run when wages and prices have not yet fully adjusted to changes in the economy. The aggregate demand curve shows the relationship between the price level and real GDP in the short run. The budget deficit refers to the government's spending exceeding its revenue, which is not related to the Phillips curve.

The Long-Run Phillips Curve Is the Counterpart to the