The implication of the long-run Phillips Curve is that there is no trade-off between inﬂation and
unemployment in the long-run.

Question

Quizplus · Accepted Answer

The long-run Phillips Curve shows that in the long-run, there is no trade-off between inflation and unemployment. This means that over time, any attempt to decrease unemployment through expansionary monetary or fiscal policies will only result in higher inflation rates in the long run. In the long run, the trade-off disappears, and the economy settles at the natural rate of unemployment.

The Implication of the Long-Run Phillips Curve Is That There