A vertical long-run Phillips curve is a vertical straight line at the natural rate of unemployment.

Question

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The vertical long-run Phillips curve represents the relationship between inflation and unemployment in the long run, after all temporary factors have been accounted for. It is a vertical straight line at the natural rate of unemployment, indicating that in the long run, changes in the rate of unemployment will not affect the rate of inflation. This is based on the idea that there is a natural rate of unemployment below which inflation will rise and above which inflation will fall.

A Vertical Long-Run Phillips Curve Is a Vertical Straight Line